margin rates
Why is this man so incredibly frustrated?
Thomas Peterffy, Founding Chairman of Interactive Brokers
Interactive Brokers has the lowest margin rates,1 yet carries only $38 billion (or 5%) of the $726 billion in outstanding margin loans.
IBKR charges 5.83% to 6.83% while most other brokers charge from 2.5% to 8% or more!2
How is this possible?
We ask Thomas Peterffy, Chairman of Interactive Brokers.
“The sad fact is that many people do not know how much their broker charges for margin loans, let alone that different brokers charge different rates. We advertise our rates on television, in print and across social media, yet people either pay no attention or do not believe what we say. It is really frustrating!”
Compare Rates
Thomas Peterffy, Founding Chairman of Interactive Brokers
Rated Lowest Margin Fees1 by StockBrokers.com
Margin rates as low as USD 5.83% Learn More
US Margin Loan Rates Comparison2
| $ 25K | $ 300K | $ 1.5M | $ 3.5M | |
|---|---|---|---|---|
| Interactive Brokers | 6.83% | 6.50% | 6.28% | 6.17% |
| E-Trade | 13.70% | 12.20% | N/A | N/A |
| Fidelity | 13.08% | 11.83% | 9.25% | 9.25% |
| Schwab | 13.08% | 11.83% | N/A | N/A |
| Vanguard | 13.25% | 11.75% | N/A | N/A |
Each firm's information reflects the standard online margin loan rates obtained from their respective websites. Competitor rates and offers subject to change without notice. Services vary by firm.
Margin borrowing is only for experienced investors with high risk tolerance.
You may lose more than your initial investment.
Notes:
- According to StockBrokers.com Online Broker Survey 2023: Read the full article Online Broker Reviews, May 18, 2023. "Professionals can take advantage of industry-leading commissions, including the lowest margin rates across all balance tiers."
- Annual Percentage Rate (APR) on USD margin loan balances for IBKR Pro as of April 2, 2024. Interactive Brokers calculates the interest charged on margin loans using the applicable rates for each interest rate tier listed on its website. Learn more about margin loan rates.