Credit card

Wire transfer

Europe

Asia

Freedom24

Stocks

Options

Futures

Cyprus Securities and Exchange Commission

Bundesanstalt fur Finanzdienstleistungsaufsicht (BAFIN)

Commissione Nazionale per le Societa e la Borsa (CONSOB)

Securities and Exchange Commission (SEC)

In addition to being listed on Nasdaq as Freedom Holding (FRHC), it offers more than 1 million investment instruments and assets including shares, ETFs, options and futures.

An interesting broker that, in addition to being listed on Nasdaq as Freedom Holding Corp. (FRHC), offers more than 1 million investment instruments and assets, including stocks, ETFs, options, and futures. Moreover, in terms of safety, it is considered a solid broker, as it is not only regulated by CySEC, the financial supervisory authority of Cyprus, but also registered with the offices of major European regulators such as BaFin (Germany) and CONSOB (Italy). In addition, it has an investor compensation fund in case of bankruptcy or insolvency.

As for trading and investments, the platform stands out for its wide market and investment product offering, with over 40,000 stocks from Europe, the United States, and Asia, as well as another 3,600 ETFs — all at competitive rates.

WebTrader

Klarna

Neteller

Paypal

Skrill

Sofort

United Kingdom

eToro

Forex

Crypto

Australian Securities and Investments Commission (ASIC)

The Financial Conduct Authority (FCA)

eToro broker is a broker specialising in Forex, commodities and indices. One of the distinguishing features of eToro is that it is designed as a social network for traders to share their experience with other eToro customers.

eToro broker is a broker specialising in Forex, commodities and indices. Since its founding in 2007, eToro has expanded its influence worldwide. One of eToro's distinguishing features is that it is designed as a social network for traders to share their experience with other eToro customers. The eToro social network has more than 4.5 million users in 140 countries. eToro is registered and supervised by the Cyprus Securities Exchange Commission (CySEC). As far as we can see, eToro is regulated and supervised by bodies that give it an adequate level of security for the investor. 

Pepperstone

Pepperstone is regulated in two jurisdictions, making it a safe (low-risk) broker for Forex and CFD trading.

Founded in 2010, Pepperstone is regulated in two jurisdictions, making it a safe (low-risk) broker for Forex and CFD trading. The entity is based in Melbourne, Australia and caters to algorithmic and copy traders. It offers the MetaTrader, TradingView and cTrader platforms. In addition, Pepperstone provides several premium add-ons to the platform to enhance the MetaTrader offering. Our opinion of Pepperstone is better than the industry average, but it still lags behind leaders such as IG or XTB. Pepperstone offers a small selection of products that it curates with great care. That said, prices are competitive for active traders on Pepperstone's Razor accounts, while for retail traders they are in line with the industry average. Pepperstone is regulated by 7 top-level regulators: ASIC, CySEC, FCA, SCB, DFSA, CMA, BaFIN. For customer security Pepperstone has segregated accounts with one of the largest banking institutions in the UK, Barclays Bank. 

cTrader

MetaTrader 4

MetaTrader 5

TradingView

Other

Trading 212

Trading 212 is an online trading portal established in 2004, which quickly gained notoriety for its user-friendly interface.

Trading 212 is an online trading portal established in 2004, which quickly gained notoriety for its user-friendly interface, the wide assortment of financial instruments available for trading, and its competitive commissions. It strives to meet the needs of a wide range of users, from novices eager to learn the basics of the financial markets to trading professionals looking for new investment opportunities. The online broker offers a wide variety of financial products, including equities, exchange traded funds (ETFs) and derivative products, positioning itself as a flexible solution for those seeking investment opportunities in a variety of areas. With an easy-to-use platform and mobile app, Trading 212 facilitates access to equities, ETFs and derivatives for investors with any level of experience. 

ActivTrades

Commission de Surveillance du Secteur Financier (CSSF)

Comissäo do Mercado de Valores Mobiliarios (CMVM)

ActivTrades is a broker specialising in Forex and CFDs (in the market for indices, commodities, shares and ETFs). Its headquarters are located in London City centre. The broker offers accounts for both retail and professional clients.

ActivTrades is a broker specialising in Forex and CFDs (in the market for indices, commodities, shares and ETFs). Its headquarters are located in London City centre. The broker offers accounts for both retail and professional clients. ActivTrades offers three different trading platforms: ActivTrader, created by ActivTrades, is a very intuitive platform on which all ActivTrades products can be traded. MetaTrader 4 and MetaTrader 5, the most recognised platforms worldwide. ActivTrades is regulated in the UK by the Financial Conduct Authority and in Luxembourg by the CSSF. 
ActivTrades is also a member of the Financial Services Compensation Scheme (FSCS) and offers additional insurance up to £1 million. The policy is underwritten by QBE Underwriting Limited and other companies participating in Lloyd's of London and is at no cost to clients. ActivTrades Corp, a subsidiary of ActivTrades, is regulated by the Securities Commission of the Bahamas (SCB). ActivTrades offers the latest technology for trading the markets, with the three trading platforms mentioned above and unique technical analysis tools, competitive spreads as low as 0.5 pips and customer service available 24 hours a day Monday to Friday in over 12 languages. ActivTrades offers three different trading platforms: The broker offers regular free training through face-to-face seminars, webinars and individual online training courses where you can learn various topics and maximise your potential in the markets. Client funds are kept in segregated accounts and all clients have negative balance protection. 

ActivTrader

DEGIRO

Commodities

Investment Funds

Autoriteit Financiële Markten (AFM)

DEGIRO is an award-winning broker that offers its customers low commissions, shares and ETFs at very low prices in selected markets. A variety of investment options and markets can be accessed through their platform.

DEGIRO broker is a low-cost online broker that started in 2008 as the first wholesale broker for retail investors and has managed to position itself as the second most used broker in the Netherlands. DEGIRO is a broker that aims to reduce the costs of online trading.

Wise

Interactive Brokers

Interactive Brokers is a broker with an international presence with whom you can open an account from almost any country and also allows you to trade stocks and indices.

Interactive Brokers is a broker with an international presence with whom you can open an account from almost any country. It also allows us to trade stocks and indices from a large number of countries, being the largest broker in the United States. Interactive Brokers is headquartered in Greenwich, Connecticut and has more than 1,200 employees in its offices in the United States, Switzerland, Canada, Hong Kong, United Kingdom, Australia, Hungary, Russia, India, China and Estonia. Interactive Brokers is regulated by the SEC, FINRA, NYSE and SFA and other regulatory agencies worldwide. 

Trader Workstation(TWS)

IBKR Desktop, Client Portal, GlobalTrader

Safetypay

Komisja Nadzoru Finansowego (KNF)

XTB broker is a broker specialising in trading financial products on OTC stock markets with over 1,500 markets available.

XTB broker is a broker specialising in trading financial products on OTC (Over The Counter) and organised stock markets. XTB's mission is to act as an intermediary for traders wishing to take positions in the more than 1,500 available markets. Since its foundation in 2002, XTB has expanded considerably, currently having offices in 13 countries and developing its business in more than 20 countries in Europe, Asia and Latin America. In terms of regulation, as mentioned earlier, XTB is under the supervision and regulation of KNF, and is registered with the Securities Market Commission under number 40. 

xStation


<p>Transform your investments and achieve financial goals with the <strong>power of compound interest</strong>. Our <strong>compound interest calculator</strong> simplifies your investment planning, allowing you to visualise the growth of your wealth and optimise your returns. </p>



<p>Discover how small regular contributions can multiply over time, paving the way for realising your financial goals, such as retirement, children&#8217;s education, or the acquisition of assets.</p>



<div id="rnk-compound_calculator"></div>



<p>Our <strong>compound interest calculator</strong> is an indispensable tool for financial planning and investments. It allows you to estimate the future value of an investment considering different interest rates, time periods, and regular contributions. </p>



<h2 class="wp-block-heading">How to use the compound interest calculator</h2>



<ul class="wp-block-list">
<li><strong>Initial investment</strong>: is the amount of money that you will invest at first.</li>
</ul>



<ul class="wp-block-list">
<li><strong>Interest Rate:</strong> the rate you expect to earn on your investment. Normally annualised.</li>
</ul>



<ul class="wp-block-list">
<li><strong>Additional investment</strong>: the amount you intend to add on top of the investment and the frequency of it.</li>
</ul>



<ul class="wp-block-list">
<li><strong>Duration or term:</strong> is the time in years that the investment will take place.</li>
</ul>



<ul class="wp-block-list">
<li><strong>Interest is compounded:</strong> the frequency with which interest is calculated on your investment.</li>
</ul>



<h2 class="wp-block-heading">What is compound interest?</h2>



<p><strong>Compound interest</strong> refers to the process by which interest is calculated not only on the initial principal (or capital) but also on the accumulated interest from previous periods. Over time, this <strong>leads to exponential growth of the investment or debt</strong>, as each new interest calculation is based on a progressively larger amount.</p>



<p>In simpler terms, compound interest is the accumulation of interest that is periodically added to the original capital, and in the next period, interest is <strong>calculated on this increased amount</strong>. As a result, with each passing period—whether it&#8217;s annually, quarterly, monthly, or daily—the total amount grows more significantly, <strong>even if the interest rate remains the same.</strong></p>


<div class="wp-block-image">
<figure class="aligncenter size-large is-resized"><img fetchpriority="high" decoding="async" src="https://rankia.co.uk/app/uploads/2024/07/compound-interest-1024x576.jpeg" alt="Compound interest effect" class="wp-image-43099" width="609" height="342" srcset="https://rankia.co.uk/app/uploads/2024/07/compound-interest-1024x576.jpeg 1024w, https://rankia.co.uk/app/uploads/2024/07/compound-interest-300x169.jpeg 300w, https://rankia.co.uk/app/uploads/2024/07/compound-interest-768x432.jpeg 768w, https://rankia.co.uk/app/uploads/2024/07/compound-interest-1536x864.jpeg 1536w, https://rankia.co.uk/app/uploads/2024/07/compound-interest-2048x1152.jpeg 2048w" sizes="(max-width: 609px) 100vw, 609px" /></figure></div>


<p>This compounding effect means that the longer the investment or loan is left to grow, the greater the total returns or amount due, thanks to the continuous addition of interest on interest</p>



<h2 class="wp-block-heading">How is compound interest calculated?</h2>



<p><strong>Compound interest</strong> is calculated as shown in the formula below. We will only need to have some data, such as the initial capital, interest, and the period. The first step is to understand the variables of this calculation:</p>



<p class="has-text-align-center"><em>VA=VF (1 + i)^n</em></p>



<ul class="wp-block-list">
<li><strong>VF</strong> = is the initial value of the operation, that is, the amount you invested;</li>
</ul>



<ul class="wp-block-list">
<li><strong>VA</strong> = the value you will receive at the end of the period, that is, initial value + interest;</li>
</ul>



<ul class="wp-block-list">
<li><strong>i</strong> = interest rate, the factor used to multiply the capital.</li>
</ul>



<ul class="wp-block-list">
<li><strong>n</strong> = is the period for which the rate will apply to the initial value.</li>
</ul>



<h2 class="wp-block-heading">Maximising the power of compound interest |From 1,000 to 100,000 Pounds</h2>



<p>No matter the starting amount — whether £1,000, £5,000, £20,000 or £100,000 — the key to building long-term wealth is using compound interest wisely. Here’s a streamlined guide to aligning your investment strategy with your capital:</p>



<p><strong>Starting small (£1,000):</strong> Focus on low-cost, high-growth options like ETFs and investment funds. Starting early is crucial to harness the power of compounding.&nbsp;</p>



<p><strong>Growing (£5,000):</strong> Diversify with individual stocks, thematic ETFs, and bonds to balance risk and return.&nbsp;</p>



<p><strong>Broadening (£20,000):</strong> Prioritise diversification. Mix traditional assets with alternatives like property or crypto to reduce risk and boost returns.&nbsp;</p>



<p><strong>High-value investing (£100,000):</strong> Seek expert advice to tailor a strategy. Explore high-performance funds and exclusive opportunities to maximise compound growth.</p>



<h2 class="wp-block-heading">Example of compound interest calculation</h2>



<p>Here is an<strong> example of how to calculate investments, and then we will explain the numbers:</strong></p>



<p>John invests an initial capital of 5,000 pounds in a simple interest financial product that generates a 2% interest rate for one year. At the end of the term, John gets his initial capital plus the simple interest generated during this time, that is, 5,100 pounds.</p>



<p>Now, suppose that John uses these same 5,000 pounds plus the profit from this first year (100 pounds) to generate compound interest at the same rate of 2%. At the end of the period (which we estimate at 12 years), the total profit from the investment would be 6,341.21 pounds.</p>



<figure class="wp-block-table"><table><thead><tr><th><div style="text-align: center;"><strong>Year</strong></div></th><th><div><strong>Invested Capital (£)</strong></div></th><th><div><strong> Generated Interest (2% AER)</strong></div></th><th><div><strong>Total (£)</strong></div></th></tr></thead><tbody><tr><td><div>1</div></td><td><div>5,000.00</div></td><td><div>100.00</div></td><td><div>5,100.00</div></td></tr><tr><td><div>2</div></td><td><div>5,100.00</div></td><td><div>102.00</div></td><td><div>5,202.00</div></td></tr><tr><td><div>3</div></td><td><div>5,202.00</div></td><td><div>104.04</div></td><td><div>5,306.04</div></td></tr><tr><td><div>4</div></td><td><div>5,306.04</div></td><td><div>106.12</div></td><td><div>5,412.16</div></td></tr><tr><td><div>5</div></td><td><div>5,412.16</div></td><td><div>108.24</div></td><td><div>5,520.40</div></td></tr><tr><td><div>6</div></td><td><div>5,520.40</div></td><td><div>110.41<span style="font-family: inherit; font-size: inherit; font-weight: inherit; background-color: var(--base-3); color: var(--contrast);"> </span></div></td><td>5,630.81</td></tr><tr><td>7</td><td><div>5,630.81</div></td><td><div>112.62</div></td><td> 5,743.43</td></tr><tr><td>8</td><td>5.743,43</td><td>114,87</td><td>5.858,30</td></tr><tr><td>9</td><td>5.858,30</td><td>117,17</td><td>5.975,47</td></tr><tr><td>10</td><td>5.975,47</td><td>119,51</td><td>6.094,97</td></tr><tr><td>11</td><td>6.094,97</td><td>121,90</td><td>6.216,87</td></tr><tr><td>12</td><td><strong>6.216,87</strong></td><td><strong>124,34</strong></td><td><strong>6.341,21</strong></td></tr></tbody></table></figure>



<p>As we can see, the interest rate does not change at any time; however, maintaining the same 2% and applying compound interest increases the capital in each period using the interest earned in the previous period.</p>



<p>That is, each time the capital is greater, the interest generated will be greater, and this is added to the capital, which in turn is reinvested, resulting in a total much higher than what would be obtained with simple interest.</p>



<h2 class="wp-block-heading">What is the difference between simple and compound interest?</h2>



<p>In the simple interest regime, the percentage of interest applies only to the initial capital. This means that the remuneration on the money will only apply to the amount invested or initially borrowed.</p>



<p>The main differences between simple and compound interest are the following:</p>



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td class="has-text-align-left" data-align="left">Simple interest</td><td class="has-text-align-left" data-align="left">Compound interest</td></tr><tr><td class="has-text-align-left" data-align="left">The initial capital does not change, remaining the same throughout the operation.</td><td class="has-text-align-left" data-align="left">The initial capital increases each period as the interest increases.</td></tr><tr><td class="has-text-align-left" data-align="left">The interest does not change, being the same for each period of the operation.</td><td class="has-text-align-left" data-align="left">The interest rate is applied to the capital, which will vary.</td></tr><tr><td class="has-text-align-left" data-align="left">The interest rate is applied to the invested capital or the initial capital.</td><td class="has-text-align-left" data-align="left">The interest will increase.</td></tr></tbody></table></figure>



<p>The difference between simple interest and compound interest is <strong>based on the capitalisation of interest on capital</strong>. That is, simple interest does not accumulate the interest generated by the capital to reinvest it; instead, it is a linear formula with the same result in each period, as long as the interest rate and term are constant.</p>



<p>The main differences between simple interest and compound interest are:</p>



<p>In simple interest, the initial capital is the same throughout the entire operation, while in compound interest, this capital varies each period.</p>



<p>The interest is the same in simple interest, while the interest in compound interest varies each period.</p>



<h2 class="wp-block-heading">Brokers and ISAs that make your money grow</h2>



<p>Choosing the <a href="https://rankia.co.uk/best-uk-stocks-and-shares-isa/" target="_blank" rel="noreferrer noopener">best Stocks and Shares ISA brokers</a> — those that prioritise your capital and offer competitive returns — can make a significant difference to your long-term financial success. Some brokers exceed the traditional offer by applying compound interest on uninvested balances, ensuring that your money remains and grows.</p>



<p>This remuneration model <strong>demonstrates a commitment to appreciating investors&#8217; resources and promoting more efficient and sustainable wealth growth</strong>.</p>



<p>This article is purely informative and educational. It cannot be considered financial advice or a buy/sell recommendation.</p>


Transform your investments and achieve financial goals with the <strong>power of compound interest</strong>. Our <strong>compound interest calculator</strong> simplifies your investment planning, allowing you to visualise the growth of your wealth and optimise your returns. 

Discover how small regular contributions can multiply over time, paving the way for realising your financial goals, such as retirement, children's education, or the acquisition of assets.

Our <strong>compound interest calculator</strong> is an indispensable tool for financial planning and investments. It allows you to estimate the future value of an investment considering different interest rates, time periods, and regular contributions. 

How to use the compound interest calculator

<strong>Initial investment</strong>: is the amount of money that you will invest at first.

<strong>Interest Rate:</strong> the rate you expect to earn on your investment. Normally annualised.

<strong>Additional investment</strong>: the amount you intend to add on top of the investment and the frequency of it.

<strong>Duration or term:</strong> is the time in years that the investment will take place.

<strong>Interest is compounded:</strong> the frequency with which interest is calculated on your investment.

<strong>Compound interest</strong> refers to the process by which interest is calculated not only on the initial principal (or capital) but also on the accumulated interest from previous periods. Over time, this <strong>leads to exponential growth of the investment or debt</strong>, as each new interest calculation is based on a progressively larger amount.

In simpler terms, compound interest is the accumulation of interest that is periodically added to the original capital, and in the next period, interest is <strong>calculated on this increased amount</strong>. As a result, with each passing period—whether it's annually, quarterly, monthly, or daily—the total amount grows more significantly, <strong>even if the interest rate remains the same.</strong>

This compounding effect means that the longer the investment or loan is left to grow, the greater the total returns or amount due, thanks to the continuous addition of interest on interest

<strong>Compound interest</strong> is calculated as shown in the formula below. We will only need to have some data, such as the initial capital, interest, and the period. The first step is to understand the variables of this calculation:

<strong>VF</strong> = is the initial value of the operation, that is, the amount you invested;

<strong>VA</strong> = the value you will receive at the end of the period, that is, initial value + interest;

<strong>i</strong> = interest rate, the factor used to multiply the capital.

<strong>n</strong> = is the period for which the rate will apply to the initial value.

Maximising the power of compound interest |From 1,000 to 100,000 Pounds

No matter the starting amount — whether £1,000, £5,000, £20,000 or £100,000 — the key to building long-term wealth is using compound interest wisely. Here’s a streamlined guide to aligning your investment strategy with your capital:

<strong>Starting small (£1,000):</strong> Focus on low-cost, high-growth options like ETFs and investment funds. Starting early is crucial to harness the power of compounding. 

<strong>Growing (£5,000):</strong> Diversify with individual stocks, thematic ETFs, and bonds to balance risk and return. 

<strong>Broadening (£20,000):</strong> Prioritise diversification. Mix traditional assets with alternatives like property or crypto to reduce risk and boost returns. 

<strong>High-value investing (£100,000):</strong> Seek expert advice to tailor a strategy. Explore high-performance funds and exclusive opportunities to maximise compound growth.

Here is an<strong> example of how to calculate investments, and then we will explain the numbers:</strong>

John invests an initial capital of 5,000 pounds in a simple interest financial product that generates a 2% interest rate for one year. At the end of the term, John gets his initial capital plus the simple interest generated during this time, that is, 5,100 pounds.

Now, suppose that John uses these same 5,000 pounds plus the profit from this first year (100 pounds) to generate compound interest at the same rate of 2%. At the end of the period (which we estimate at 12 years), the total profit from the investment would be 6,341.21 pounds.

As we can see, the interest rate does not change at any time; however, maintaining the same 2% and applying compound interest increases the capital in each period using the interest earned in the previous period.

That is, each time the capital is greater, the interest generated will be greater, and this is added to the capital, which in turn is reinvested, resulting in a total much higher than what would be obtained with simple interest.

What is the difference between simple and compound interest?

In the simple interest regime, the percentage of interest applies only to the initial capital. This means that the remuneration on the money will only apply to the amount invested or initially borrowed.

The main differences between simple and compound interest are the following:

The difference between simple interest and compound interest is <strong>based on the capitalisation of interest on capital</strong>. That is, simple interest does not accumulate the interest generated by the capital to reinvest it; instead, it is a linear formula with the same result in each period, as long as the interest rate and term are constant.

The main differences between simple interest and compound interest are:

In simple interest, the initial capital is the same throughout the entire operation, while in compound interest, this capital varies each period.

The interest is the same in simple interest, while the interest in compound interest varies each period.

Brokers and ISAs that make your money grow

Choosing the <a href="https://rankia.co.uk/best-uk-stocks-and-shares-isa/" target="_blank" rel="noreferrer noopener">best Stocks and Shares ISA brokers</a> — those that prioritise your capital and offer competitive returns — can make a significant difference to your long-term financial success. Some brokers exceed the traditional offer by applying compound interest on uninvested balances, ensuring that your money remains and grows.

This remuneration model <strong>demonstrates a commitment to appreciating investors' resources and promoting more efficient and sustainable wealth growth</strong>.

This article is purely informative and educational. It cannot be considered financial advice or a buy/sell recommendation.

Compound Interest Calculator – Start Saving Smarter