Forex Interest Calculator: three main reasons according to Trader Union 

Forex Interest Calculator

Why yet another forex Interest Calculator?

There are many forex interest calculator out there, so why did we decide to build yet another one? There are three main reasons.

First off, we are working on a big surprise for you and the forex interest calculator is part of our learning process for that surprise. You can read more about it in the section below.

Another reason is that forex interest charts and tables are powerful ways to visualize how much your investment can possibly grow and compare the amount invested with the amount you earn in interest. It’s a great way to show that money makes money. For more details, please read our use case in the section below.

The final reason why we chose to build this calculator was that we found a few drawbacks on the first search results for compound interest calculators:

  • Some calculators have a cluttered UI;
  • Many don’t show any charts or tables, which makes it hard to visualize the compound interest effect;
  • Some aren’t intuitive to use and try to cater to too many use-cases;
  • The monthly contribution field isn’t available in some calculators.
  • After trying the same input data in different calculators, we got different results. This means different calculators use different formulas, but many don’t share the formula they use to calculate the compound interest;
  • Not all calculators are mobile-friendly.

How do you calculate forex interest?

This calculator is based on a model that considers regular contributions for your investments. The formula contains two parts: one for the initial investment, and another for the contributions. Here are the two:

forex interest for the initial investment:
Initial Investment x (1 + interest/12 months)(12 months x years invested)

forex interest for the monthly contributions:
Monthly Contributions × {[(1 + interest/12 months)(12 months x years invested) – 1] / (interest/12 months)}

The final formula is:
[Initial Investment x (1 + interest/12 months)(12 months x years invested)] + [Monthly Contributions × {[(1 + interest/12 months)(12 months x years invested) – 1] / (interest/12 months)}]

10 years later, the balance with compounding is 35.35% higher than without compounding.

LegacyFx review 

LegacyFX review is a multi-asset trading specialist providing brokerage services for forex and CFD trading on gold, oil, cryptocurrencies, indices, and major stocks, internationally for traders worldwide since 2017. LegacyFX is GDPR compiled and fully regulated by CySEC, FCA and BaFin, with a main objective to enhance financial transparency and offer greater client protection. Its trading conditions are among the tightest spreads in the market, starting from only 0.6 pips. 

The broker offers more than 200 trading instruments. LegacyFX provides its clients with the MetaTrader 5. Legacy FX gives the keys to access the forex market 24 hours a day, 5 days a week, allowing users to trade the most popular major, minor and exotic currency pairs. For full protection of investment LegacyFX operates negative balance protection along with complete segregation of client funds from company’s assets.

LegacyFX Reliability & Security

Reliability-wise, LegacyFX uses MetaTrader 5. MT5 is one of the best applications for traders, and it has all the bells and whistles for navigating the markets. The software system is free, and it allows traders to perform orders, analysis, and charting functions, all without skipping a beat. 

The use of MT5 is a huge point in LegacyFX’s favor, as not many other brokers use this software, preferring, instead, to stick to MT5’s predecessor, MetaTrader 4. The fact that MetaTrader 5 is a mainstay of this broker makes it unique—in a good way hugosway.

 LegacyFX User Experience

The customer support at LegacyFX is top-quality, which will come in handy, especially if you’re a new trader who needs help getting adjusted to the markets. The user-friendly features, high-end software, and educational tools prove this is a broker who is concerned with the quality of its users’ experience. 

Additionally, LegacyFX is focused on making the client compliance system work well. The advanced, automated system approves clients within a few hours (maximum 24). The broker also has dedicated customer support and quality assessment teams, which review all communication channels with clients. The broker’s TrustPilot score is a 3.4/5.

Final Thoughts on LegacyFX

LegacyFX is a feature-heavy broker. One of its highlights is that it offers MetaTrader 5, which is a customer-favorite that not many other brokers can say they provide to their clients. The variety of account types and wide range of educational tools and course are some of the main highlights when it comes to this broker.

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