IB - interest on futures margin deposits

Discussion in 'Retail Brokers' started by pcvix, Apr 11, 2006.

  1. pcvix



    Can someone possibly confirm the correctness of the following understanding?

    When money is held in the commodities account as margin for open futures contracts, such money continues to receive interest but is treated separately from the balance in the securities account, ie, the two balances are not aggregated for the purpose of determining applicable tiered interest rates.

    For example, with ten open ES contracts (held overnight), $39,375 is retained in the commodities account, and only $29,375 receives interest (since the first $10,000 doesn't) at IB's USD benchmark less 0.5%, irrespective of the balance in the securities account.