IB Margin Rates

B

bridenour

Hi,

Does anyone know what IB charges for margin rates for accounts under $250k?

I took a look at their website but found the info a little confusing.

I use MBTrading but noticed that their margin rates are > 7% and I paid a small fortune in margin fees this year.

Thanks for any info...
 
Wow....so i guess I'm getting raped paying 7.4% at MBTrading. I dont get how they can be so out of whack with what IB is offering.

I hate to do it but for that reason alone I'm going to have to switch brokers. Been with MB for 5+ years and really would rather not switch, but that is like an instant 5%+ performance boost.
 
Quote from SideShowBob:

Go to:

http://www.interactivebrokers.com/en/accounts/fees/interest.php

Click on the "Interest Charged" tab. Those are the rates you pay. The rates go down if you borrow more than $100,000 USD (listed in the first column). So under $100K you'll pay (currently) 1.61%. Over $100K you'll pay 1.11%. Over $1 million you pay 0.61%. Not bad rates at all.

Then again they can afford it since they pay nothing in interest.
More...


who are u to judge whether they can afford it? sounds like obama talk.
in case u forget IB is in business to make money. maybe u can sue the rest of the brokerage industry for anti-trust violation for charging such high interest rates

then u can make alot of money.:D
 
Quote from bridenour:

Wow....so i guess I'm getting raped paying 7.4% at MBTrading. I dont get how they can be so out of whack with what IB is offering.

I hate to do it but for that reason alone I'm going to have to switch brokers. Been with MB for 5+ years and really would rather not switch, but that is like an instant 5%+ performance boost.
More...

Raped is a strong word....then again considering it sounds appropriate.
 
Quote from zdreg:

who are u to judge whether they can afford it? sounds like obama talk.
in case u forget IB is in business to make money. maybe u can sue the rest of the brokerage industry for anti-trust violation for charging such high interest rates

then u can make alot of money.:D
More...

Who am I? I'm one of their victims! :D

It's my God-given right as an IB customer to bitch about them on Elitetrader.com. It's actually written into the brokerage agreement :p

Honestly I don't care that much about the interest but I don't like the fact that they offer mutual funds now but avoid offering a money market fund (at least they did last time I looked ... which gives me something to do right now).
 
Sweet I just looked they do offer money market funds, at least for Dreyfus. will check more later. Finally somewhere to park my cash.
 
Quote from SideShowBob:

OUCH! I just checked again (see under http://www.interactivebrokers.com/en/trading/mf.php?exch=Dreyfus&ib_entity=llc) and I noticed they have a $200K minimum for money market funds. IB screws the small guy again. :mad: :mad: :mad:
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If you would first check the return on these funds--and calculate the amount of time you would actually be in them--before trashing IB you would likely see that you would net about $50 A YEAR, likely less. So 'small guy,' if that's all it takes to screw you then you must admit you are a cheap whore.
 
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