IB credit interest rate

Discussion in 'Retail Brokers' started by Toonces, May 17, 2006.

  1. Toonces

    Toonces

    Does anyone know what interest rate IB is currently paying? I couldn't find anything on the website.
     
  2. def

    def Interactive Brokers

    AUD
    AUD Australian Dollar LIBOR1 (Spot-Next rate)
    5.695%
    CAD
    CAD LIBOR1 (Overnight rate)
    4.045%
    CHF
    Swiss Franc LIBOR1 (Spot-Next rate)
    1.000%
    EUR
    EONIA1 (Euro Overnight Index Average)
    2.610%
    GBP
    GBP LIBOR1 (Overnight Rate)
    4.450%
    HKD
    HKOIS1 (Hong Kong Overnight Index Swap fixing)
    3.247%
    JPY
    JPY LIBOR1 (Spot-Next rate)
    0.062%
    KRW
    Korean Won KORIBOR1 (Overnight rate)
    3.960%
    MXN
    Mexican Government CETES1 (Overnight Rate)
    6.730%
    SEK
    SEK STIBOR1 (Overnight Rate)
    2.100%
    USD
    US Dollar LIBOR1 (Overnight Rate)
    5.099%

    I'm not sure how the above will format but those are the benchmark rates. The rate earned depends on your balance either the BM - 50 bps or 25 bps.

    details are under fees/interest on the home page.
    http://www.interactivebrokers.com/en/accounts/fees/interest.php?ib_entity=llc#credit
     
  3. I don't remember them having Korea, Mexico, and SEK (whatever that is). Are those new?
     
  4. $$$lover

    $$$lover

    SEK = Swedish Kroner......as in Sweden.........

    now guess


    NOK =

    DKK =......

    no need I hope you can figure it out
     
  5. mbbcat

    mbbcat

    BUT........

    The first xxxxx does not earn anything ie for sterling the first £6,000 PER ACCOUNT is a FREE LOAN to IB

    For DEBIT interest the first cent COSTS!!

    Apart from that, mostly IB is a good broker.
     
  6. I agree, its a real nice deal for IB.

    However, to put the best possible spin on it, it can be said to subsidize the low commissions.

    A bigger benefit to the most active traders for sure. And hey, thats 450 bucks you dont have to pay tax on!
     
  7. wwx

    wwx

    In all fairness, IB's trading software, TWS (far from perfect, but good), and the first wire withdrawal (each month) are free. The effective costs of these two items typically exceed the interest lost on the first tier of account balance.

    IB benchmark rates:
    http://www.interactivebrokers.com/en/accounts/fees/interest.php?ib_entity=llc#interest

    If anyone knows of a broker paying higher credit interest rates than IB, I'd greatly appreciate it if he/she would mention the name on this forum.

    It's probably safe to assume that most, if not all, sensible IB customers want the company to make a decent profit, so that it will continue to prosper, invest in technology, improve its overall services, and, most importantly, be financially strong.

    At the risk of stating the obvious, it makes sense for retail customers to do business with profitable financial services companies.
     
  8. Toonces

    Toonces

    Does anyone know whether interest rates dipped substantially in April? I had more funds in my account in April compared to March, but my credit interest was about twice as much is March. I guess maybe I was holding more positions overnight in April?
     
  9. range

    range

  10. Toonces

    Toonces

    I have an account with both too. I don't know how TS gets away with it.
     
    #10     May 18, 2006