Living on the Margin, at a Discount
4 stars based on
Speaking of margin-al discounts. I recently lowered my stock margin rate from 4. One of the best things investors can do to increase our net returns is to reduce the cost of investing. When it comes to leverage, or borrowing money to invest, the best way to reduce our cost is to find a broker which charges the lowest interest rates.
So I recently transferred my entire margin portfolio from TD to IB to reap the benefits of lower cost borrowing. Overall I would say IB is a better choice for myself when it comes to interactive brokers margin rates trading.
Hands down it has the lowest margin rates, even compared to other U. Plus the more money investors deposit into their accounts, the cheaper the borrowing cost will be due to the tiered margin system that most brokers have. The platform is clearly geared towards more experienced traders. The user interface takes some time to get use to. There are tons of features, graphs, reports, and data to play around with.
Everyone should do their own research about brokerage companies. Ive been contemplating a move to IB for the past few months — just need to make up my mind whether I want to pull the trigger. I know for Questrade, they have 3 options. Trading software you can download, interactive brokers margin rates platforms to trade interactive brokers margin rates the browser. The Trading software you can download, allows you to do bracket orders which means interactive brokers margin rates the price you buy or sell initially, and then the stop loss order and sell or buy to finish the trade on one order entry.
The trading software also shows profit and loss curves i. The 2 web based platforms do not let you do both of these things. Ugg, this pains me. Which means my only option is to use the web-based platform stand-alone platform is Windows only. Made two trades so far this year, one sale — one purchase. Seems like a bit too much of a hassle for me but I do not know it all.
Besides they can be seen for free elsewhere, interactive brokers margin rates no need to pay. In addition any commissions are deducted from the fee. But since I use a lot of margin, the interest savings is worth the extra cost of inactivity fees in my situation. How do you transfer all of your holdings from TD to IB when you are using margin?
Do you have to pay some sort of fees first? Unlike traditional loans such as student debt, mortgages, etc, the amount of money investors can borrow in a margin account changes every day calculated using margin maintenance requirements. I check my credit score at the beginning of each year. Good move man, I am interested to to my margin account to IB. Could you please tell me the process and how long it took to move from TD to IB a few days, or week or month?
It took a few week for me because I messed up the instructions to transfer my securities a couple of times in the beginning. It also takes about 1 to 2 weeks to set up an IB account in the first place. I will write another post about the details soon. I would love to hear more details of the process of switching from TD to IB. Considering doing the same myself! The platform has more of a learning curve but once you set aside an evening or two it all comes together.
The cost savings have been incredible since April. The trading platforms I find very good. The TWS platform is a program you download to your computer to access your account. They also have a traditional java website called WebTrader — if you trade at work you might use this because your company like mine will not allow me to install non-work related software TWS. The mobile app is pretty good as well making interactive brokers margin rates easy to trade on the go.
Please note if you use margin account with them then you need to closely manage it. Not happened to me but they are apparently ruthless when it comes to interactive brokers margin rates calls. With unbundled commission structure, commission can be as low as 35 cents per shares.
Even loweer if you enter liquidity providing limit orders as IB pass on exchange rebate back to interactive brokers margin rates for unbundled commission structure. Also, if you subscribe to the yield enhancement program, you can earn little more money by lending out your stock holdings. And yet he still refuses to buy me dinner […]. Congrats on the switch to Interactive Brokers. I pay something like 35 cents per buy order with their tiered commission- as Interactive brokers margin rates usually buy less than shares at a time, this is super cheap.
As others have mentioned, if you are a long-term investor, you do not really need real time quotes. What about Interactibve brokers? ENB currently pays interactive brokers margin rates 5. Reduced margin rates for more cost-effective leverage. I was paying on average 4. This represents a difference interactive brokers margin rates 2. Access to global markets.
So having access to a global trading platform is important for my financial goals. Penalty for not being an active trader. I assuming Interactive Brokers does this as well. It does give you better access to the world wide stock market so that is a plus. Not Working As Intended. Thanks for the tips. I look forward to writing covered calls to make some extra income. Weekly Linkfest 6 - Financial Uproar. How to use Interactive Brokers - Brokerage Review. How the Debt Spectrum Works.