IB Margin Rates

Discussion in 'Retail Brokers' started by bridenour, Jan 5, 2010.

  1. 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...
  2. Go to:


    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.
  3. 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.
  4. zdreg


    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.:D
  5. Raped is a strong word....then again considering it sounds appropriate.
  6. Who am I? I'm one of their victims! :D

    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 :p

    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).
  7. Sweet I just looked they do offer money market funds, at least for Dreyfus. will check more later. Finally somewhere to park my cash.
  8. Where do they offer drefus money funds in IB?
  9. J.P.


    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.
    #10     Jan 6, 2010