Current blended rate on a $2 million position is about 2.7%. Not sure why no other brokers seem to be willing or able to compete with this. Has anyone else figure out why they are so much lower? For me this is a lot more significant to my bottom line than even "free options trading".
Any brokers have margin rates anywhere close to IB?
- Thread starter BinaryAlgorithm
- Start date
None that I know of. Even Lightspeed doesn't offer anywhere near as close to them according to this article.
No
Yep, pretty much every single one of them allows you to sell a wide SPX box which gets you as close as any retail trader is going to get to the wholesale lending rate. No need to pay any broker's margin interest.
Not that I know of. And I spoke exactly about this point in another thread. Free commission can't make up for the lack of affordable margin loans, returns on idle cash balances and the like. I think my math in the other thread was correct.
No, but the futures market offers leverage at a lower interest corresponding to the market rate.