Doesn't matter who is doing the loaning to whom, or what is being lent, or whether it's even a completely private transaction between two consenting adults, which is why loan sharking is illegal. Want to lend your neighbor $1,000 bucks fine. Ask him to pay back $1100 next week and you've broken the law, you won't be able to enforce the $100 in interest for one week in court, although you might try calling it a late fee or an annual fee, which is what credit card companies do to squeeze their already sky high rates even higher, beyond the legal caps in various states. The IB rate, and or the rate IB is charged, is flatly usurious, and should be contested in court, with regulators or at congressional/legislative levels. The SEC 'may' be toothless? C'mon ....
Bottom line really here is that most retail traders don't know don't care or are too lazy to do anything, even when they know they are getting ripped. Billions have been made since commissions were deregulated back in the 70s exploiting this sad reality.
Bottom line really here is that most retail traders don't know don't care or are too lazy to do anything, even when they know they are getting ripped. Billions have been made since commissions were deregulated back in the 70s exploiting this sad reality.