That's it, make condescending remarks to your clients about their math skills, that's a good start. I'm going to call bullshit on that. The real reason you do the tiering is to avoid paying interest on the first 10K for any client no matter their acc't size. It doesn't matter if they have a 500K acc't. If they have three different positions across sub-acc'ts, you will refuse interest payments on 30K on a pro-rata basis. You people at IB are unbelieveable. You patronize and insult the intelligence of your clients and then pull out the "oh, we don't cater to the proletariat" excuse to attempt to explain your overpriced margin interest. IB sickens me.
on a note, u pay interests even if the position u are carryin' is not marginable and u fully cover the costs in cash.
What are legacy rates? Now the USD $2.5 min commission isn't equivalent. Why do these rates squeeze the so-called "equivalent min commission"? Regarding "coming soon", roughly how long is it? Is it really implementing? I ask this because I see one offer which is promised "coming soon" haven't come for years.
IBj, you should perhaps refrain from making such comments, as IB offers (LIBOR - 0.5) or so, for cash on most accounts above the bare minimum - reasonable when you consider some other brokers. Otherwise you'll start to sound like Tradestation's management who clearly have no clue about the concept of asset allocation or modern portfolio theory and practice - and we wouldn't want that now would we?
Except that we always lose interest of the first 10k on every sub-balances (note: not total-balance), no matter how big the acount size is. For example, if you have 4 sub-balances, you may lose 40k.
You are correct, they do not allow for such flexibility. I was actually referring to IBj's comment about plonking your money in an interest bearing account that reminded me of Tradestation management speak (read: clueless) - that's all.
Perhaps I dont understand to what you are referring but you do NOT pay interest on fully paid for purchases, only on loans of some kind. Regarding various other comments made here, our policy is what it is. We have reasons for it, as has been explained in brief. I am sure we could program some refinements to it (and we will) but at the end of the day we are focusing our resources more on our brokerage services, not our banking ones. Our methods are fully published in detail and people are free to compare when making their choice in placing their monies.
yes i do, i dont know if i have to call 'em interests, but am carryin' a not marginable position and it shows accrued negative interests accumulatin' day by day.
We have a $2.5 price. We converted to other currencies at some rate in the past when the dollar was stronger. Since then rates moved pretty sharply so the pricing in other currencies is no longer equal (roughly) to $2.50. Hence 'legacy'. 'Soon' means it is begin actively worked on now. I cannot say if that means 2 weeks or 2 months.