Interactive Brokers Margin Interest Rates 2022

Current IB margin rates: interest rates, fees, charged on trading account margin loans. IBKR base lending rate (BLR), broker loan cost.

Interactive Brokers Margin Rates

Interactive Brokers has a margin policy designed for large professional investors. As such, the broker's lowest tier is $25,000. This is much higher than the first level at other firms, such as TD Ameritrade ($10,000), and Ally Invest ($5,000). IB's top tier is $3,500,000, meaning that investors who borrow more than $3,500,000 get the firm's lowest rate.

IB's current margin rates for IBKR Pro pricing plan (where you pay commissions on stock and ETF trades) are as follows:

Debit Balance Margin Rate
$0 - $100,000 1.6%
$100,001 - $1,000,000 1.6%
$1,000,001 - $3,000,000 1.6%
$3,000,001+ 1.6%

Everything above $3,500,000 is 0.5% or base rate plus 0.25% (whichever is greater)

IB's current margin rates for IBKR Lite pricing plan ($0 commissions on stock and ETF trades) are as follows:

Debit Balance Margin Rate
$0 - $100,000 2.6%
$100,001 - $1,000,000 2.6%
$1,000,001 - $3,000,000 2.6%
$3,000,001+ 2.6%

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IB Interest Rates

Remarkably, Interactive Brokers has the lowest margin rates by far. This benefit comes at a cost, however. IB accounts have a $10 minimum monthly charge. That's $120 per year in fees with no margin loan at all. Some investors might decide to pass on IB despite the broker's low margin rates.

Accounts denominated in different currencies at IB may have different pricing. For example, margin rates for accounts in Euros begin at a base rate plus 1.5%. The current base rate for Euros is zero, so the highest rate is only 1.5%.

Current Interactive Brokers Cash Interest Rates


Interactive Brokers Overview

Interactive Brokers has some of the widest range of investment options and some of the lowest prices of all brokers. Trading in North American can be done for as little as $1USD. Their trading platform is advanced with the ability to add on lots of useful functions for active traders. The firm is also the best broker for margin trading with the lowest margin interest rates in the industry. However, inexperienced trades who make irregular investments may find their system overwhelming. Their customer service is also not the best.

Opening the account

Opening an account can be done online through the Interactive Brokers website. The application is fairly standard and simple to complete. Their website can sometimes be slow or drop out which can make this process a bit time consuming. Certified copies of the applicant’s ID will need to be sent via post to Interactive Brokers for the account to be fully activated. The whole process can be done within a week if the website is accessible.

Applicants need to state the intended purpose of the account which may limited the functionality of the account based on their trading experience and goals. However, this can be changed later. There is a minimum opening deposit of 10,000USD, or $5000 for IRAs.

The account will have a base currency chosen at the time of application, but deposits can be made in over 20 major currencies, or the Forex services can be used to exchange money within the account. This is very convenient if trading will be done in multiple currencies/nations.

Margin loans are available and can be applied for with the initial application or once the account is open. Loans are available in over 20 currencies at extremely low rates, only slightly above the official cash rate for that currency. The current rate for $100,000 - $1,000,000USD is an amazing 1.4%. Users can select to add additional features and services such as recommendations, reporting, charting, etc. These are charge monthly or annually and more suited to active traders.

Interactive Brokers Margin Rates

Using the account

Trading can be done either through the ‘Account Management’ site, WebTrader platform or the downloadable Trader Work Station. Login in requires the use of a physical security card which means frequent trade will need to keep the device with them if they intend to trade on the go. The trading platform is advanced and offers a large range of trading options including stock, options, futures, FOPs, ETFs, Warrants, Structures Products, SSFs, Forex, Metals, Indices, Bonds and CFDs. For experienced, active traders the trading platform is very good, for casual investors will limited needs and experience the platform can be daunting at first.

The online trading platform does not have separate pages for separate functions nor does it have an aesthetically pleasing layout. However, it is quite simple to use once the relevant parts of the platform are identified. The account will open on the ‘Account’ page. This shows account balance, portfolio, and positions. There are no pretty graphs and there is plenty of jargon but this page shows everything that an account holder needs. The ‘Order Management’ bar is at the bottom of the page and used for placing orders.


There is a monthly account fee of $10USD. However, all trade commissions go toward making up this fee, so if you pay $10USD in trading commissions you will not pay anything for the account fee.

The trading commissions are incredibly low. For the US based markets, they are $0.005 per share, with a minimum of $1 and maximum of 0.5% of the trade value. $10,000 of Bank of America shares (670 shares) would cost you $3.35. There is also a range of ETFs which can be traded commission free. The commission for the other exchanges is generally around 0.1% of the trade value or $10 for $10,000 of shares. The fees get lower for frequent traders or higher volumes. If you trade between 300,000 to 3,000,000 shares per month the commission is only $0.002 per share.

Forex rates are also extremely low. The fee is $0.00002 of trade volume with a minimum of $2USD. Basically any amount under $100,000 will be changed a minimum $2. The rate decreases for high monthly amounts. The other investments options all follow this pattern of low fees.

Realistically a casual investor will end up paying only $120 per annum for the account fee as it is unlikely their trading commissions will exceed $10USD a month. Overall the cost is extremely low and probably the biggest benefit of using Interactive Brokers.

Buying and Selling

The actual process of buy or selling is simple but the stock code and live price will be needed. Basic accounts have delayed prices so unless the price has stayed the same or gone down slightly it will not be executed at the displayed market rate. First search for the ‘Stock Code’, then enter the quantity, price and click ‘Preview Order’. This will open a popup detailing the total cost and fees, which can be either confirmed or edited. Once an order has been placed it can be amended for free as many times as needed before it settles. This is also very simple and can be done through the ‘Orders’ toggle under ‘Order Management’ bar.

Other features

Interactive Brokers provides comprehensive statements which can be created to cover set periods (monthly/annually) or specific date ranges. The statements are detailed and may seem a little complex but they are very useful. However, these can not be access through WebTrader and requires logging in to ‘Account Management’. This is one of the more annoying parts of Interactive Brokers, the account details are separate to the trading system. To update details, get statements or message Interactive Brokers users need go through the separate ‘Account Management’ system.

The second major issue is the website; It can frequently drop out or be unresponsive. This may be varying for different account holders, internet connections and locations however it can be very frustrating the account can not be accesses and used when required. The customer service is systematic and procedural but can sometimes feel slow and unresponsive. This is especially true if it is impossible to log on to the website for a day or two.


Interactive Brokers provide a large range of trading services at incredibly low prices. If the account will be used for active trading or high volumes, then it will be hard to bet them for price and functionality. The margin loans are also impressively cheap which makes them very affordable to all traders. Although the trading platform is simple it is not very intuitive or aesthetically pleasing. Casual users may find it intimidating and confusing. However, it really is very simple once understood and should be considered due to its low cost.

Interactive Brokers Margin Rates Disclaimer

Interactive Brokers margin rates are as of 2022 and are subject to change. For the most recent information on Interactive Brokers margin interest rates visit their website.

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