Interest and Financing

Interest Schedule


Interactive Brokers calculates an internal funding rate based on a combination of internationally recognized benchmarks on overnight deposits (ex: Fed funds, LIBOR) and real time market rates as traded, measured, in the interbank short-term currency swap markets, the world's largest and most liquid market.

While central banks and major money-center banks set and publish reference rates for interest dependent investments, these rates often do not reflect the exact investment costs/opportunities seen in interbank and commercial transactions. IB's interest model starts with the fixing rates and incorporates the dynamic market pricing to produce a midpoint or "Benchmark".

Around this benchmark, IB adds a spread to determine deposit and borrowing rates applicable to client balances in each currency. Spreads are tiered such that larger balances receive more favorable interest treatment by virtue of smaller spreads to the benchmark.


Effective Benchmark Rates

IB's benchmark for each currency is the reference rate around which our credit, debit, stock-loan, and other interest rate linked calculations are determined. IB uses a combination of internationally recognized interest rate fixings (such as LIBOR, Fed Funds, etc) and dynamic interbank rates determined from foreign exchange and money-markets to calculate an IB-Effective rate.

Rates for each currency are shown below. Rates shown with a '*' represent prior day data in cases where the latest interest information has yet to be determined.

For more information about IB-Effective rates click here.

For information regarding the various benchmark fixings that contribute to the IB-Effective rate click here.


CurrencyDescription for Effective Date 20171020 Rate Code
USD
Calculated Effective Interest Benchmark USD
1.160%
*
USD
Calculated Effective Interest Benchmark USDLibor
1.185%
*
AUD
Calculated Effective Interest Benchmark AUD
1.594%
*
CAD
Calculated Effective Interest Benchmark CAD
0.873%
*
CHF
Calculated Effective Interest Benchmark CHF
(0.785)%
*
CNY/CNH
Calculated Effective Interest Benchmark CNH
2.219%
*
CZK
Calculated Effective Interest Benchmark CZK
0.280%
*
DKK
Calculated Effective Interest Benchmark DKK
(0.521)%
*
EUR
Calculated Effective Interest Benchmark EUR
(0.360)%
*
GBP
Calculated Effective Interest Benchmark GBP
0.044%
*
HKD
Calculated Effective Interest Benchmark HKD
0.165%
*
HUF
Calculated Effective Interest Benchmark HUF
(0.224)%
*
ILS
Calculated Effective Interest Benchmark ILS
0.245%
*
INR
Calculated Effective Interest Benchmark INR
9.700%
*
JPY
Calculated Effective Interest Benchmark JPY
(0.006)%
*
KRW
Calculated Effective Interest Benchmark KRW
1.250%
*
MXN
Calculated Effective Interest Benchmark MXN
7.635%
*
NOK
Calculated Effective Interest Benchmark NOK
0.429%
*
NZD
Calculated Effective Interest Benchmark NZD
2.000%
*
PLN
Calculated Effective Interest Benchmark PLN
1.488%
*
RUB
Calculated Effective Interest Benchmark RUB
7.600%
*
SEK
Calculated Effective Interest Benchmark SEK
(0.522)%
SGD
Calculated Effective Interest Benchmark SGD
0.764%
*
ZAR
Calculated Effective Interest Benchmark ZAR
6.984%
Code:
blank applies to the Effective Date shown
* applies to the past day

IB accrues interest on a daily basis and posts actual interest monthly on the third business day of the following month. For detailed examples on how we calculate interest, open the Interest Paid to You and Interest Rates Charged to You on Margin Loan Balances sections on this page.


Interest Paid to You

When calculating rates, IB uses a blended rate based on the tiers below. With the exception of CHF, CZK, DKK, EUR, JPY and SEK, if the benchmark rate plus the interest rate paid is less than 0 then the interest paid will be 0%. For balances held in CHF, CZK, DKK, EUR, JPY or SEK IB will apply an effective negative rate to long balances held as outlined in the table below.

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

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

For the purposes of crediting interest on either long settled cash balances or short stock collateral values, only accounts with Net Asset Value (NAV) exceeding USD 100,000 will be eligible to receive credit interest on long settled cash balances.

Higher Interest Rates for Large Cash Balances

We pay interest to clients for credit balances, based upon rates available in the interbank deposit market. For those clients that hold large cash balances in multiple currencies, we offer the ability to take advantage of the Forex Swaps market to potentially earn higher rates. This program is not designed for and would not benefit any client who holds a single-currency long balance. The mechanics behind this program involve the buying of a currency for settlement one day out and the selling of the same currency two days out, the difference in value between the two settlement dates being the interest earned. We automatically keep rolling the swaps until you no longer meet the minimum balance criteria, or you instruct us to halt the program. You must have at least USD $10 million in cash, and US residents must be Eligible Contract Participants (ECP) to enroll in the program.

For more information please contact our swaps desk at FXSwaps@IBKR.com or see the FAQs in the Documentation section of Traders' University.


Interest Paid to You on Positive (Credit) Cash Balances View Examples


Balance
Calculate Blended Rate


BM = Benchmark Rate
Currency Tier Rate Paid
USD 0 - 10,000 0%
10,000.01 + 0.66% (BM - 0.5%)
AUD 0 - 14,000 0%
14,000.01 - 140,000 1.094% (BM - 0.5%)
140,000.01 + 1.344% (BM - 0.25%)
CAD 0 - 14,000 0%
14,000.01 + 0.373% (BM - 0.5%)
CHF 0 - 100,000 0%
100,000.01 + -1.035% (BM - 0.25%)
CNY/CNH All 0%
CZK 0 - 2,500,000 0%
2,500,000.01 + 0.03% (BM - 0.25%)
DKK 0 - 700,000 0%
700,000.01 + -0.771% (BM - 0.25%)
EUR 0 - 100,000 0%
100,000.01 + -0.61% (BM - 0.25%)
GBP 0 - 8,000 0%
8,000.01 + 0% (BM - 0.5%)
HKD 0 - 78,000 0%
78,000.01 + 0% (BM - 0.75%)
HUF 0 - 2,800,000 0%
2,800,000.01 + 0% (BM - 3%)
ILS All 0%
INR All 0%
JPY 0 - 11,000,000 0%
11,000,000.01 + -0.256% (BM - 0.25%)
KRW 0 - 12,000,000 0%
12,000,000.01 + 0% (BM - 1.5%)
MXN 0 - 190,000 0%
190,000.01 + 3.635% (BM - 4%)
NOK 0 - 85,000 0%
85,000.01 + 0% (BM - 2.5%)
NZD 0 - 15,000 0%
15,000.01 + 0% (BM - 2.5%)
PLN 0 - 400,000 0%
400,000.01 + 0% (BM - 2%)
RUB 0 - 700,000 0%
700,000.01 + 2.6% (BM - 5%)
SEK 0 - 850,000 0%
850,000.01 + -0.772% (BM - 0.25%)
SGD 0 - 15,000 0%
15,000.01 + 0% (BM - 1%)
ZAR 0 - 150,000 0%
150,000.01 + 5.984% (BM - 1%)

Interest Rates Charged to You on Margin Loan Balances View Examples

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 set benchmark rate or a benchmark rate of 0 for all benchmark rates less than 0.

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

The tiers on which interest is based 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 Loan Amount Rate Charged
USD 0 - 100,000 2.66% (BM + 1.5%)
100,000.01 - 1,000,000 2.16% (BM + 1%)
1,000,000.01 - 3,000,000 1.66% (BM + 0.5%)
3,000,000.01 - 200,000,000 1.41% (BM + 0.25%)
200,000,000.01 + 1.41% (BM + 0.25%) See note below
AUD 0 - 140,000 3.094% (BM + 1.5%)
140,000.01 - 1,400,000 2.594% (BM + 1%)
1,400,000.01 - 140,000,000 2.094% (BM + 0.5%)
140,000,000.01 + 2.094% (BM + 0.5%) See note below
CAD 0 - 140,000 2.373% (BM + 1.5%)
140,000.01 - 1,400,000 1.873% (BM + 1%)
1,400,000.01 - 140,000,000 1.373% (BM + 0.5%)
140,000,000.01 + 1.373% (BM + 0.5%) See note below
CHF 0 - 100,000 1.5% (BM + 1.5%)
100,000.01 - 1,000,000 1% (BM + 1%)
1,000,000.01 - 200,000,000 0.5% (BM + 0.5%)
200,000,000.01 + 0.5% (BM + 0.5%) See note below
CNY/CNH 0 - 625,000 5% (BM + 5%)
625,000.01 - 6,250,000 5% (BM + 5%)
6,250,000.01 - 125,000,000 5% (BM + 5%)
125,000,000.01 + 5% (BM + 5%) See note below
CZK 0 - 400,000,000 3.28% (BM + 3%)
400,000,000.01 + 3.28% (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 - 100,000 1.5% (BM + 1.5%)
100,000.01 - 1,000,000 1% (BM + 1%)
1,000,000.01 - 150,000,000 0.5% (BM + 0.5%)
150,000,000.01 + 0.5% (BM + 0.5%) See note below
GBP 0 - 80,000 1.544% (BM + 1.5%)
80,000.01 - 800,000 1.044% (BM + 1%)
800,000.01 - 160,000,000 0.544% (BM + 0.5%)
160,000,000.01 + 0.544% (BM + 0.5%) See note below
HKD 0 - 780,000 2.665% (BM + 2.5%)
780,000.01 - 7,800,000 2.165% (BM + 2%)
7,800,000.01 - 780,000,000 1.665% (BM + 1.5%)
780,000,000.01 + 1.665% (BM + 1.5%) See note below
HUF 0 - 4,500,000,000 5% (BM + 5%)
4,500,000,000.01 + 5% (BM + 5%) See note below
ILS 0 - 80,000,000 5.245% (BM + 5%)
80,000,000.01 + 5.245% (BM + 5%) See note below
INR All 12.7% (BM + 3%)
JPY 0 - 11,000,000 1.5% (BM + 1.5%)
11,000,000.01 - 110,000,000 1% (BM + 1%)
110,000,000.01 - 20,000,000,000 0.5% (BM + 0.5%)
20,000,000,000.01 + 0.5% (BM + 0.5%) See note below
KRW 0 - 120,000,000 3.25% (BM + 2%)
120,000,000.01 - 1,200,000,000 2.75% (BM + 1.5%)
1,200,000,000.01 - 24,000,000,000 2.25% (BM + 1%)
24,000,000,000.01 + 2.25% (BM + 1%) See note below
MXN 0 - 1,900,000 10.635% (BM + 3%)
1,900,000.01 - 19,000,000 9.635% (BM + 2%)
19,000,000.01 - 1,900,000,000 9.135% (BM + 1.5%)
1,900,000,000.01 + 9.135% (BM + 1.5%) See note below
NOK 0 - 850,000 1.929% (BM + 1.5%)
850,000.01 - 8,500,000 1.429% (BM + 1%)
8,500,000.01 - 850,000,000 0.929% (BM + 0.5%)
850,000,000.01 + 0.929% (BM + 0.5%) See note below
NZD 0 - 150,000 3.5% (BM + 1.5%)
150,000.01 - 1,500,000 3% (BM + 1%)
1,500,000.01 - 150,000,000 2.75% (BM + 0.75%)
150,000,000.01 + 2.75% (BM + 0.75%) See note below
PLN 0 - 70,000,000 4.488% (BM + 3%)
70,000,000.01 + 5.488% (BM + 4%) See note below
RUB 0 - 660,000,000 12.6% (BM + 5%)
660,000,000.01 + 12.6% (BM + 5%) See note below
SEK 0 - 850,000 1.5% (BM + 1.5%)
850,000.01 - 8,500,000 1% (BM + 1%)
8,500,000.01 - 850,000,000 0.5% (BM + 0.5%)
850,000,000.01 + 0.5% (BM + 0.5%) See note below
SGD 0 - 150,000 2.264% (BM + 1.5%)
150,000.01 - 1,500,000 1.764% (BM + 1%)
1,500,000.01 - 150,000,000 1.264% (BM + 0.5%)
150,000,000.01 + 1.264% (BM + 0.5%) See note below
ZAR 0 - 1,500,000 8.484% (BM + 1.5%)
1,500,000.01 - 15,000,000 7.984% (BM + 1%)
15,000,000.01 - 1,500,000,000 7.734% (BM + 0.75%)
1,500,000,000.01 + 7.734% (BM + 0.75%) See note below

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

Disclosures
  • 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 use the Short Stock (SLB) Availability Tool in the Support > Tools menu in Account Management.