Best Broker for Long-Short Equity Strategy

Discussion in 'Retail Brokers' started by Poleris, Feb 20, 2023.

  1. Poleris

    Poleris

    Hello,

    My trading strategy involves going long-short equities (mostly ETB) with a holding period of up to several months. Currently, I'm using IB but am trying to shop around to see if there might be a broker (US, must offer Portfolio Margin) with more competitive rates.

    For example:
    - 200k in Short Positions on IB, getting paid ~1,67% interest on 200k Short Sale Proceeds
    - 200k in Long Positions on IB, needing to pay ~5.75% interest on -200k Net Cash

    I'd like to get a closer spread between 1.67 and 5.75% or even more ideally find a broker that does not separate Short Sale Proceeds out of Net Cash.

    Does anyone have any recommendations?
     
    Last edited: Feb 20, 2023
    cruisecontrol likes this.
  2. traider

    traider

    Use options create synthetic short
     
  3. FSU

    FSU

    cruisecontrol likes this.
  4. Poleris

    Poleris

    Few Notes I forgot to mention:
    1. Synthetic shorts can sometimes help, but for many of the positions I'm looking at, shorting directly is the only or more efficient option.
    2. Funding via SPX Box Spreads does work, but the larger gap that I'm looking to address is on the short side.
     
  5. Poleris

    Poleris

    FSU - thanks for the recommendation, I'll ask them.