Interest and Financing

Interest Schedule


Interactive Brokers uses internationally recognized benchmarks on overnight deposits as a basis for determining interest rates. We then apply a spread around the benchmark interest rate ("BM") in tiers, where larger cash balances receive increasingly better rates, to determine an effective rate.


Benchmark Rates

The current day benchmarks are as follows:


Benchmark Rates as of 20150731
Currency
Benchmark (BM)
Rate
USD
Fed Funds Effective (Overnight Rate)
0.080%
USD
11 am GMT USD LIBOR (used only for USD-CFDs, Gold and Silver Borrow Fees)
0.121%
AUD
RBA Daily Cash Rate Target
2.000%
CAD
Bank of Canada Overnight Lending Rate
0.500%
CHF
Swiss Franc LIBOR (Spot-Next rate)
(0.773)%
CNY/CNH
CNY HIBOR Overnight Fixing Rate
0.000%
CZK
Prag ON Interbank Offered Rate
0.150%
DKK
Danish Tom/Next Index
0.000%
EUR
EONIA (Euro Overnight Index Average)
(0.102)%
GBP
GBP LIBOR (Overnight Rate)
0.477%
HKD
HKD HIBOR (Overnight rate)
0.089%
HUF
Budapest Interbank Offered Rate
0.530%
ILS
Tel Aviv Interbank Offered O/N Rate
0.000%
INR
Central Bank of India Base Rate
0.000%
JPY
JPY LIBOR (Spot-Next rate)
0.026%
KRW
Korean Won KORIBOR (1 week)
0.000%
MXN
Mexican Interbank TIIE (28 day rate)
0.000%
NOK
Norwegian Overnight Weighted Average
0.990%
NZD
New Zealand Dollar Official Cash Daily Rate
0.000%
RUB
RUONIA (Ruble Overnight Index Average)
11.190%
SEK
SEK STIBOR (Overnight Rate)
(0.325)%
SGD
Singapore Dollar SOR (Swap Overnight) Rate
0.000%
Prior Period Benchmark Rates

IB accrues interest on a daily basis and posts actual interest monthly on the 3rd business day of the following month. For detailed examples on how we calculate interest, click here. For information on how to read interest on your statement, click here.


Interest Benchmark Definitions
Fed Funds Effective (USD only) is the volume weighted average of the transactions processed through the Federal Reserve between member banks. It is intended to reflect the best estimate of interbank financing activity for Reserve Bank members and is the reference for many short term money market transactions in the broader market.
LIBOR (multiple currencies) stands for London Inter-Bank Offered Rate. It is a daily fixing for deposits with durations from overnight to 1 year and is determined by a group of large London banks. It is the most widely used measurement for interest rates on most currencies outside the domestic market(s).
EONIA (EUR only) is the global standard for overnight Euro deposits and is determined by a weighted average of the actual transactions between major continental European banks mediated through the European Central Bank.
HIBOR (HKD only) is a daily fixing based on a group of large Hong Kong banks. Similar methods and durations are set as for LIBOR currencies.
KORIBOR (KRW only) is an average of the leading interest rates for KRW as determined by a group of large Korean banks. The benchmark utilizes the KORIBOR with 1 week maturity.
STIBOR (SEK only) is a daily fixing based on a group of large Swedish banks. The same methods and durations are set as for LIBOR currencies.
RUONIA (RUB) is a weighted rate of overnight Ruble loans. The RUONIA is calculated by the Bank of Russia.
PRIBOR (CZK) is the average interest rate at which term deposits are offered between prime banks.
BUBOR (HUF) is the average interest rate at which term deposits are offered between prime banks
TIIE (MXN only) is the interbank "equilibrium" rate based on the quotes provided by money center banks as calculated by the Mexican Central Bank. The benchmark TIIE is based on 28-day deposits so is atypical as a measure for short term funds (most currencies have an overnight or similar short term benchmark).
Overnight (O/N) rate is the most widely used short term benchmark and represents the rate for balances held from today until the next business day.
Spot-Next (S/N) refers to the rate on balances from the next business day to the business day thereafter. Due to time zone and other criteria, Spot-Next rates are sometimes used as the short-term reference.
RBA Daily Cash Target (AUD) refers to a 1 day rate set by the Reserve Bank of Australia to influence short term interest rates.
NZD Daily Cash Target (NZD) refers to a 1 day rate set by the Reserve Bank of New Zealand to influence short term interest rates.
Day-Count conventions: IB conforms to the international standards for day-counting wherein deposits rates for most currencies are expressed in terms of a 360 day year, while for other currencies (ex: GBP) the convention is a 365 day year.

Interest Paid to You

When calculating rates, keep in mind that IB uses a blended rate based on the tiers below.

IB accrues interest on a daily basis and posts actual interest monthly on the 3rd business day of the following month.

The tiers which interest is based upon may change from time-to time without prior notification to clients. Such adjustments are done periodically to adjust for changes in currency rates.


Interest Paid to You on Positive (Credit) Cash Balances


Balance
Calculate Blended Rate


BM = Benchmark Rate
Currency Tier Rate Paid
USD 0 - 10,000 0%
  10,000.01 + 0%   (BM - 0.5%)
AUD 0 - 10,000 0%
  10,000.01 - 100,000 1.5%   (BM - 0.5%)
  100,000.01 + 1.75%   (BM - 0.25%)
CAD 0 - 10,000 0%
  10,000.01 + 0%   (BM - 0.5%)
CHF 0 - 100,000 0%
  100,000.01 - 1,000,000 - 0.5%
  1,000,000.01 - 5,000,000 - 1.0%
  5,000,000.01 + - 2.5% See note 1 below
CNY/CNH All 0%
CZK 0 - 200,000 0%
  200,000.01 + 0%   (BM - 2%)
DKK 0 - 55,000 0%
  55,000.01 + 0%   (BM - 2%)
EUR 0 - 7,500 0%
  7,500.01 + 0%   (BM - 0.5%)
GBP 0 - 6,500 0%
  6,500.01 + 0%   (BM - 0.5%)
HKD 0 - 78,000 0%
  78,000.01 + 0%   (BM - 0.75%)
HUF 0 - 2,200,000 0%
  2,200,000.01 + 0%   (BM - 3%)
ILS All 0%
INR All 0%
JPY 0 - 1,000,000 0%
  1,000,000.01 + 0%   (BM - 0.5%)
KRW 0 - 12,000,000 0%
  12,000,000.01 + 0%   (BM - 1.5%)
MXN 0 - 130,000 0%
  130,000.01 + 0%   (BM - 4%)
NOK 0 - 60,000 0%
  60,000.01 + 0%   (BM - 2.5%)
NZD 0 - 13,000 0%
  13,000.01 + 0%   (BM - 2.5%)
RUB 0 - 330,000 0%
  330,000.01 + 6.19%   (BM - 5%)
SEK 0 - 70,000 0%
  70,000.01 + 0%   (BM - 0.5%)
SGD 0 - 13,000 0%
  13,000.01 + 0%   (BM - 1%)
Examples - Interest Paid to You
on Positive (Credit) Cash Balances



Interest Paid to You on Short Sale Proceeds Cash Balances


Calculate Blended Rate

BM = Benchmark Rate
Currency Tier Rate Paid
USD 0 - 100,000 0%
  100,000.01 - 1,000,000 0%   (BM - 1.25%)
  1,000,000.01 - 3,000,000 0%   (BM - 0.5%)
  3,000,000.01 + 0%   (BM - 0.25%)
CAD 0 - 100,000 0%
  100,000.01 - 1,000,000 0%   (BM - 1.75%)
  1,000,000.01 - 3,000,000 0%   (BM - 1.1%)
  3,000,000.01 + 0%   (BM - 0.9%)
CHF 0 - 100,000 - 0.75% (Rate Effective Date: 2/1/15)
  100,000.01+ - 3.00% (Rate Effective Date: 2/1/15)
EUR 0 - 75,000 0%
  75,000.01+ 0%   (BM - 2.25%)
GBP 0 - 65,000 0%
  65,000.01+ 0%   (BM - 2.25%)
SEK 0 - 700,000 0%
  700,000.01+ 0%   (BM - 2.25%)
AUD 0 - 100,000 0%
  100,000.01 + 0%   (BM - 2.25%)
HKD 0 - 780,000 0%
  780,000.01 0%   (BM - 2.25%)
Examples - Interest Paid to You
on Short Sale Proceeds Cash Balances

Interest Rates Charged to You on Margin Loan Balances

When calculating rates, keep in mind that IB uses a blended rate based on the tiers below. For example, for a balance over 1,000,000 USD, the first 100,000 is charged at the Tier I rate, the next 900,000 at the Tier II rate, etc. When determining the quoted spread, IB will use the greater of the benchmark rate and 0.

IB accrues interest on a daily basis and posts actual interest monthly on the 3rd business day of the following month.

The tiers which interest is based upon may change from time-to time without prior notification to clients. Such adjustments are done periodically to adjust for changes in currency rates.


Balance
Calculate Blended Rate

BM = Benchmark Rate

Currency Tier Rate Charged
USD 0 - 100,000 1.58%   (BM + 1.5%)
  100,000.01 - 1,000,000 1.08%   (BM + 1%)
  1,000,000.01 - 3,000,000 0.58%   (BM + 0.5%)
  3,000,000.01 - 200,000,000 Greater of 0.5%   or   (BM + 0.25%)
  200,000,000.01 + Greater of 0.5%   or   (BM + 0.25%)   See note below
AUD 0 - 100,000 3.5%   (BM + 1.5%)
  100,000.01 - 1,000,000 3%   (BM + 1%)
  1,000,000.01 - 200,000,000 2.5%   (BM + 0.5%)
  200,000,000.01 + 2.5%   (BM + 0.5%) See note below
CAD 0 - 100,000 2%   (BM + 1.5%)
  100,000.01 - 1,000,000 1.5%   (BM + 1%)
  1,000,000.01 - 200,000,000 1%   (BM + 0.5%)
  200,000,000.01 + 1%   (BM + 0.5%) See note below
CHF 0 - 100,000 0.727%   (BM + 1.5%)
  100,000.01 - 1,000,000 0.227%   (BM + 1%)
  1,000,000.01 - 200,000,000 0%   (BM + 0.5%)
  200,000,000.01 + 0%   (BM + 0.5%) See note below
CNY/CNH 0 - 625,000 2.5%   (BM + 2.5%)
  625,000.01 - 6,250,000 2%   (BM + 2%)
  6,250,000.01 - 125,000,000 1.5%   (BM + 1.5%)
  125,000,000.01 + 1.5%   (BM + 1.5%) See note below
CZK 0 - 400,000,000 3.15%   (BM + 3%)
  400,000,000.01 + 3.15%   (BM + 3%) See note below
DKK 0 - 120,000,000 3%   (BM + 3%)
  120,000,000.01 + 3%   (BM + 3%) See note below
EUR 0 - 75,000 1.398%   (BM + 1.5%)
  75,000.01 - 750,000 0.898%   (BM + 1%)
  750,000.01 - 150,000,000 0.398%   (BM + 0.5%)
  150,000,000.01 + 0.398%   (BM + 0.5%) See note below
GBP 0 - 65,000 1.977%   (BM + 1.5%)
  65,000.01 - 650,000 1.477%   (BM + 1%)
  650,000.01 - 130,000,000 0.977%   (BM + 0.5%)
  130,000,000.01 + 0.977%   (BM + 0.5%) See note below
HKD 0 - 780,000 2.589%   (BM + 2.5%)
  780,000.01 - 7,800,000 2.089%   (BM + 2%)
  7,800,000.01 - 780,000,000 1.589%   (BM + 1.5%)
  780,000,000.01 + 1.589%   (BM + 1.5%) See note below
HUF 0 - 4,500,000,000 5.53%   (BM + 5%)
  4,500,000,000.01 + 5.53%   (BM + 5%) See note below
ILS 0 - 80,000,000 5%   (BM + 5%)
  80,000,000.01 + 5%   (BM + 5%) See note below
INR All 3%   (BM + 3%)
JPY 0 - 10,000,000 1.526%   (BM + 1.5%)
  10,000,000.01 - 100,000,000 1.026%   (BM + 1%)
  100,000,000.01 - 20,000,000,000 0.526%   (BM + 0.5%)
  20,000,000,000.01 + 0.526%   (BM + 0.5%) See note below
KRW 0 - 120,000,000 2%   (BM + 2%)
  120,000,000.01 - 1,200,000,000 1.5%   (BM + 1.5%)
  1,200,000,000.01 - 24,000,000,000 1%   (BM + 1%)
  24,000,000,000.01 + 1%   (BM + 1%) See note below
MXN 0 - 1,300,000 3%   (BM + 3%)
  1,300,000.01 - 13,000,000 2%   (BM + 2%)
  13,000,000.01 - 260,000,000 1.5%   (BM + 1.5%)
  260,000,000.01 + 1.5%   (BM + 1.5%) See note below
NOK 0 - 600,000 2.49%   (BM + 1.5%)
  600,000.01 - 6,000,000 1.99%   (BM + 1%)
  6,000,000.01 - 600,000,000 1.49%   (BM + 0.5%)
  600,000,000.01 + 1.49%   (BM + 0.5%) See note below
NZD 0 - 130,000 1.5%   (BM + 1.5%)
  130,000.01 - 1,300,000 1%   (BM + 1%)
  1,300,000.01 - 130,000,000 0.75%   (BM + 0.75%)
  130,000,000.01 + 0.75%   (BM + 0.75%) See note below
RUB 0 - 660,000,000 16.19%   (BM + 5%)
  660,000,000.01 + 16.19%   (BM + 5%) See note below
SEK 0 - 700,000 1.175%   (BM + 1.5%)
  700,000.01 - 7,000,000 0.675%   (BM + 1%)
  7,000,000.01 - 700,000,000 0.175%   (BM + 0.5%)
  700,000,000.01 + 0.175%   (BM + 0.5%) See note below
SGD 0 - 130,000 1.5%   (BM + 1.5%)
  130,000.01 - 1,300,000 1%   (BM + 1%)
  1,300,000.01 - 130,000,000 0.5%   (BM + 0.5%)
  130,000,000.01 + 0.5%   (BM + 0.5%) See note below
Examples - Interest Rates Charged to You
on Margin Loan Balances

Note: May be subject to a 1% surcharge applied to the spread if financing is not pre-arranged.

Disclosures
  1. The applied rate may be reduced if pre-arranged. Please contact Customer Service to discuss further

  • Costs for position borrowing of stocks with special considerations (for example hard to borrow instruments) are usually higher than for normal availability stocks. These additional costs will be passed on in the form of lower short stock credit interest. Please note that this may lead to a net debit short stock credit interest in the event that the costs to borrow exceed the interest earned. In order to view the indicative short stock interest rates for a specific stock, IB recommends that clients utilize the Short Stock (SLB) Availability tool located under Account Management > Tools.