Terms lending IB

Discussion in 'Interactive Brokers' started by elc1988, Dec 23, 2013.

  1. elc1988

    elc1988

    Hello.

    I would like to know on what terms IB will give me the opportunity to take credit money. I'm sorry, but I did not find this information on the site IB.

    I have $ 35,000 and I want to buy using IB shares for a period of 6 months.
    How much money will I use a broker?
    How much should I pay a commission?
    And the most important thing. When (!) Broker will charge you for giving me credit?

    Thank you. And sorry my bad english :) I'm not American.
     
  2. d08

    d08

  3. elc1988

    elc1988

  4. IB-AN

    IB-AN Interactive Brokers

    1.59% is not a per month rate, but rather the annual rate (ignoring the effect of compounding).

    Assume for, example you deposited $100,000 cash, purchased securities valued at $200,000 and therefore incurred a margin loan of $100,000. Assuming your loan balance and the interest rate remain stable, your borrowing cost would be approximately $4.42 per day ($100,000 * .0159/360).

    Interest is calculated and accrued daily as the rate is pegged to a benchmark which, itself is subject to daily fluctuations (the Fed Funds Effective Overnight Rate in the case of the USD). Interest accruals are posted to your cash balance typically during the first week of the following month and once posted will increase any existing margin loan and therefore, its effective borrowing cost.

    Historical trends of benchmark rates for each currency are made available on our website:

    https://www.interactivebrokers.com/en/?f=/en/accounts/fees/monthlyInterestRates.php