Best broker based on margin rate

Discussion in 'Retail Brokers' started by hajimow, Aug 13, 2005.

  1. Lets assume your account is less than 100K. Lets be more specific and nail it to $55K ( a little over 50K). Which broker offers the best margin rate for trading stocks? I see my broker "IB" rate is about 4.6% and I don't see any other broker's rate less than that. The other important factor is the margin rate for credit balance for shorting the stock which is 1.85% .
     
  2. Are you saying you're getting charged interest for shorting stock? When you have a credit balance?
     
  3. Are you saying you're getting charged interest for shorting stock? When you have a credit balance?

    No I am getting that credit interest rate of 1.85% for my short account. I was asking are there any brokers with better rates. Based on my research there are NONE!
     
  4. Yes, I've looked around and those are good rates. I'm actually surprised you get paid interest on your credit balance since you only have to put up 50% of the trade. The brokerage firm has to put up 100% of the short sale to the lender.
     
  5. My point is to do the research and find a broker{s} who is good in every aspect. Not a broker who charges 1% less commission but its margin rate is 8%!!!
     
  6. However, IB charges for cancellations from what I hear. What kind of crap is that? There's a commission you can't even compare with other brokers.
     
  7. rcj

    rcj


    No, not on stocks!

    ......... rj
     
  8. Like it makes a difference if it's options??
     
  9. def

    def Interactive Brokers

    there are a few facts you may not know about in regards to the IB cancel fee.

    1. credits are given against executions.
    2. exchanges charge $1 per cancel/modify
    3. IB's minimum commission is $1

    Firms with higher minimums per trade, can easily absorb the cancel fee. With IB's fee, if we didn't pass on this cost, we wouldn't be profitable. In short, the cancel fee along with the execution credit works well for most of our clients.
     
  10. GTC

    GTC

    IB also doesn't pay anything to the customers for the first $10000 of the cash balance. A lot other brokers do. We should look at the whole picture.
     
    #10     Aug 15, 2005