Can anyone compete with IBs margin rates?

Discussion in 'Interactive Brokers' started by Saltynuts, Feb 2, 2020.

  1. Been with IB for probably not much short of 2 decades. Originally loved them for their super low commissions. But other brokers' commissions seemed to have dropped over time, and I do not know how much of an advantage IB has in that area these days. Bit their margin rates still seem KILLER compared to everyone else I see. Can anyone compete with them? If not, how can IB beat everyone else so soundly?
     
  2. All the other brokers can compete with IB... they just choose not to.
     
    jys78 and guru like this.
  3. By the way, is a broker short rate same as margin on borrowing? Or rates are different? Thanks!
     
  4. RedDuke

    RedDuke

    their futures margin are awful. Very high. I think oil initial close to 10k.
     
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  5. I like their futures margins. I don't want IB to go bankrupt because of client accounts.
     
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  6. RedDuke

    RedDuke

    While I do not disagree, But their main advantage is technology. Most brokers check margin at end of day, where IB does it in real time, every second. This is why such high margin is not really warranted.
     

  7. Waaaaait a sec Mcnoob. You mentioned IB going bankrupt. I hope you have not heard anything, and this is just a theoretical risk? I've got all my assets with them!
     

  8. Wow. Its just no on else chooses to. Like why commissions are so competitive, but why no one else chooses to match IB on margin rates. Just seems a little weird.
     
  9. Theoretical. I'd rather ib be conservative with clients stupidity rather than the opposite.
     
    taojaxx likes this.

  10. Haha thanks. Can't say I disagree!
     
    #10     Feb 2, 2020