Interest on short positions

Discussion in 'Retail Brokers' started by TM_Direct, Aug 15, 2007.

  1. What are some of the firms out there paying ( if anything) on open short positions??? Thanks for any input or info you can give hearing quite the wide range of payments versus charges.
  2. thanks but where do i find that info without serching their entire site?
  3. Catoosa


    Go to the IB home page > Fees (top of home page) > Interest & Financing
  4. This is a BIG deal...
    And IB pays you interest on the short position on principle...
    While everybody else just STEALS that interest...
    Because it's an Industry Tradition to Screw the Customer.

    I'm usually 60/40 long/short...
    So this is probably worth about 2.5% additional return year after year...
    And it does, in fact, compound.
  5. GTC


    TM_Direct, IB pays you on the proceeds generated by short sales only after the 1st $100,000. IB is not the only one that pays you on the proceeds generated by short sales.
  6. This is no longer true.

    IB enables you to earn interest on every single dollar of proceeds from short sales of stocks having corresponding SSFs (single-stock futures contracts), provided you invest the proceeds in a short EFP. A short EFP temporarily replaces your short stock position with a short SSF position, until the SSF expires or you buy back the EFP.
  7. i heard that some firms were paying 4 % on the shorts, treating it like a cash position...while others are CHARGING for the shorts just like a margin position?????? wide range of practices :confused:
  8. anyone else besides IB with an opinion?
  9. Catoosa


    Do you know which brokers pay 4% on short positions as if they are cash?
    #10     Aug 16, 2007