IB credit interest rate

Quote from Toonces:

Does anyone know what interest rate IB is currently paying? I couldn't find anything on the website.
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AUD
AUD Australian Dollar LIBOR1 (Spot-Next rate)
5.695%
CAD
CAD LIBOR1 (Overnight rate)
4.045%
CHF
Swiss Franc LIBOR1 (Spot-Next rate)
1.000%
EUR
EONIA1 (Euro Overnight Index Average)
2.610%
GBP
GBP LIBOR1 (Overnight Rate)
4.450%
HKD
HKOIS1 (Hong Kong Overnight Index Swap fixing)
3.247%
JPY
JPY LIBOR1 (Spot-Next rate)
0.062%
KRW
Korean Won KORIBOR1 (Overnight rate)
3.960%
MXN
Mexican Government CETES1 (Overnight Rate)
6.730%
SEK
SEK STIBOR1 (Overnight Rate)
2.100%
USD
US Dollar LIBOR1 (Overnight Rate)
5.099%

I'm not sure how the above will format but those are the benchmark rates. The rate earned depends on your balance either the BM - 50 bps or 25 bps.

details are under fees/interest on the home page.
http://www.interactivebrokers.com/en/accounts/fees/interest.php?ib_entity=llc#credit
 
BUT........

The first xxxxx does not earn anything ie for sterling the first £6,000 PER ACCOUNT is a FREE LOAN to IB

For DEBIT interest the first cent COSTS!!

Apart from that, mostly IB is a good broker.
 
I agree, its a real nice deal for IB.

However, to put the best possible spin on it, it can be said to subsidize the low commissions.

A bigger benefit to the most active traders for sure. And hey, thats 450 bucks you dont have to pay tax on!
 
Quote from mbbcat:

The first xxxxx does not earn anything ie for sterling the first £6,000 PER ACCOUNT is a FREE LOAN to IB

For DEBIT interest the first cent COSTS!!
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In all fairness, IB's trading software, TWS (far from perfect, but good), and the first wire withdrawal (each month) are free. The effective costs of these two items typically exceed the interest lost on the first tier of account balance.

IB benchmark rates:
http://www.interactivebrokers.com/en/accounts/fees/interest.php?ib_entity=llc#interest

If anyone knows of a broker paying higher credit interest rates than IB, I'd greatly appreciate it if he/she would mention the name on this forum.

It's probably safe to assume that most, if not all, sensible IB customers want the company to make a decent profit, so that it will continue to prosper, invest in technology, improve its overall services, and, most importantly, be financially strong.

At the risk of stating the obvious, it makes sense for retail customers to do business with profitable financial services companies.
 
Does anyone know whether interest rates dipped substantially in April? I had more funds in my account in April compared to March, but my credit interest was about twice as much is March. I guess maybe I was holding more positions overnight in April?
 
Quote from range:

If you don't like IB's credit interest rates (4.55% for funds over $10,000; 4.80% for funds over $100,000), you won't like the 1.125% that you can get at TradeStation for balances over $10,000. (I have accounts at both, and I find the TS credit rates a bit frustrating.)

http://www.tradestation.com/fees/other.shtm
http://www.interactivebrokers.com/en/accounts/fees/interest.php?ib_entity=llc#credit
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I have an account with both too. I don't know how TS gets away with it.
 
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