Hi, Does anyone know what IB charges for margin rates for accounts under $250k? I took a look at their website but found the info a little confusing. I use MBTrading but noticed that their margin rates are > 7% and I paid a small fortune in margin fees this year. Thanks for any info...
Go to: http://www.interactivebrokers.com/en/accounts/fees/interest.php Click on the "Interest Charged" tab. Those are the rates you pay. The rates go down if you borrow more than $100,000 USD (listed in the first column). So under $100K you'll pay (currently) 1.61%. Over $100K you'll pay 1.11%. Over $1 million you pay 0.61%. Not bad rates at all. Then again they can afford it since they pay nothing in interest.
Wow....so i guess I'm getting raped paying 7.4% at MBTrading. I dont get how they can be so out of whack with what IB is offering. I hate to do it but for that reason alone I'm going to have to switch brokers. Been with MB for 5+ years and really would rather not switch, but that is like an instant 5%+ performance boost.
who are u to judge whether they can afford it? sounds like obama talk. in case u forget IB is in business to make money. maybe u can sue the rest of the brokerage industry for anti-trust violation for charging such high interest rates then u can make alot of money.
Who am I? I'm one of their victims! It's my God-given right as an IB customer to bitch about them on Elitetrader.com. It's actually written into the brokerage agreement Honestly I don't care that much about the interest but I don't like the fact that they offer mutual funds now but avoid offering a money market fund (at least they did last time I looked ... which gives me something to do right now).
Sweet I just looked they do offer money market funds, at least for Dreyfus. will check more later. Finally somewhere to park my cash.
OUCH! I just checked again (see under http://www.interactivebrokers.com/en/trading/mf.php?exch=Dreyfus&ib_entity=llc) and I noticed they have a $200K minimum for money market funds. IB screws the small guy again.
If you would first check the return on these funds--and calculate the amount of time you would actually be in them--before trashing IB you would likely see that you would net about $50 A YEAR, likely less. So 'small guy,' if that's all it takes to screw you then you must admit you are a cheap whore.