Discussion in 'Retail Brokers' started by AwkwardMoment, Apr 18, 2006.
Which online broker gives a person the best Margin Rates?
What markets do you trade? We offer standard $500 day trading margins for E-Mini SP, E-Mini NQ, E-Mini Russell, and Mini Dow. We also offer $300 day trading margins as well for E-Mini SP, E-Mini NQ, and Mini Dow.
Awkward: What do you mean by margin rates? Debit interest on loans against stock positions? Credit interest on credit balances?
IB charges LIBOR+1.5 for debit balances under $100K ( http://www.interactivebrokers.com/en/accounts/fees/interest.php?ib_entity=llc#interest for complete info ).
Assent charges about LIBOR+1.75 up to at least $50K.
Scottrade is about LIBOR+5 under $50K ( http://www.scottrade.com/commissions/interest_rates.asp )
E*TRADE is about LIBOR+5 under $50K ( https://us.etrade.com/e/t/estation/pricing?id=1206010000#MR )
MBT seems to be about LIBOR+3.75 or more - there is no date on the site page ( http://www.mbtrading.com/intRates.asp ).
These types of threads are pointless. Brokers will negotiate a lower rates for big accounts anyway.
It's like asking: "How long is a piece of string?"
You will get 10 different answers from 10 different people.
Which online brokers can I do international trades inexpensively?
Which online broker gives the best Margin Rates?
Which online broker is more likely to go bankrupt, because it has the lowest margin requirements?
I don't think they're pointless. I'd bet that the vast majority of the people reading and posting such questions are not "big accounts". That's why I didn't bother with the >50K/100K tiers. Anyone who's routinely carrying a debit balance might benefit from seeing that there are places out there (like IB and Assent) with much better rates.
If you are a broker offering inferior margin interest rates, then of course you will have reason to conceal them from public disclosure, and to reveal them and to manipulate them through a process of negotiation, something like the way a car salesman operates. If you are a broker offering the best deal, then you will have some incentive to publish and to advertise the details freely and openly, without haggling.
If you are a broker offering an inferior deal, then you will have incentive to try to persuade potential customers that they should ignore those brokers who do publish the best deals.
The foregoing is in reference to equity margin interest rates, but is not in reference to futures margin requirements. Brokers who brag about having the lowest futures margin requirements are at elevated risk of a bankruptcy, in which a futures customer can lose his entire account, which might be seized to cover losses incurred by other customers of the same broker.
thanks people for all your responses.... I was just talking about stock margin rates by the way...
The rate I get from Cobra Trading (www.cobratrading.com) through Penson is 8.45%. Which in my experience is pretty good.
Separate names with a comma.