Expected fees and interest rates paid for Interactive Brokers margin account

Discussion in 'Retail Brokers' started by chvid, Apr 5, 2016.

  1. chvid

    chvid

    Hello forum.

    I am trying to get my head around the following.

    I have 10.000 USD in a margin account at Interactive Brokers. And I buy 5.000 USD worth of GOOG and sell 5.000 USD worth of FB. So I have:

    10.000 USD cash
    5.000 USD of GOOG
    -5.000 USD of FB

    And I hold this position for one year.

    What can expect to pay and receive in interest? That is:

    1. Interest received on 10.000 USD in cash?
    2. Interest received for allowing shorting of GOOG?
    3. Interest paid for shorting of FB?

    Any additional fees?

    As far as I can see the following applies:

    1. Currently 0%.

    https://www.interactivebrokers.com/en/index.php?f=interest&p=schedule

    0%
    10,000.01 + 0% (BM - 0.5%)

    Where BM is the overnight fed funds rate. Currently 0.370%

    2. None

    3. After SLB - Shortable Instruments Tool found under account management:

    Symbol @ Exchange: FB @ ARCA
    Quantity Available: >10'000'000 shares
    Current Rebate Rate*: 0.1200%
    Current Fee Rate**: 0.2500%

    I think I will paid last of the two rates: 0.2500%

    Is this correct?

    Suppose I increase the positions from 5.000/-5.000+10.000 to 7.500/-7.500+10.000? Does it makes any difference to the interest paid?