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.


Benchmark Rates

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


CurrencyEffective Benchmark Rate Effective Rate (BM) 1 Day Interbank Rates, Market Pricing2
USD
Fed Funds Effective (Overnight Rate)
1.160*%
N/A
N/A
USD
11 am GMT USD LIBOR (used only for USD-CFDs, Gold and Silver Borrow Fees)
1.178*%
N/A
N/A
AUD
RBA Daily Cash Rate Target
1.529*%
1.527%

Fixing Period, 20170824

CAD
Bank of Canada Overnight Lending Rate
0.750*%
0.781%

Live, 20170824

CHF
Swiss Franc LIBOR (Spot-Next rate)
(0.781)%
(1.060)%

Live, 20170824

CNY/CNH
CNH HIBOR Overnight Fixing Rate (TMA)
1.016*%
1.818%

Fixing Period, 20170824

CZK
Prag ON Interbank Offered Rate
0.280*%
(0.233)%

Live, 20170824

DKK
Danish Tom/Next Index
(0.535*)%
(0.798)%

Live, 20170824

EUR
EONIA (Euro Overnight Index Average)
(0.358*)%
(0.612)%

Live, 20170824

GBP
GBP LIBOR (Overnight Rate)
0.223*%
0.050%

Live, 20170824

HKD
HKD HIBOR (Overnight rate)
0.069*%
0.016%

Fixing Period, 20170824

HUF
Budapest Interbank Offered Rate
0.060*%
0.085%

Live, 20170824

ILS
Tel Aviv Interbank Offered O/N Rate
0.350*%
0.500%

Live, 20170824

INR
Central Bank of India Base Rate
9.700*%
N/A
N/A
JPY
JPY LIBOR (Spot-Next rate)
(0.027*)%
(0.304)%

Live, 20170824

KRW
Korean Won KORIBOR (1 week)
1.250*%
N/A
N/A
MXN
Mexican Interbank TIIE (28 day rate)
7.375*%
7.051%

Live, 20170824

NOK
Norwegian Overnight Weighted Average
0.315*%
0.343%

Live, 20170824

NZD
New Zealand Dollar Official Cash Daily Rate
2.000*%
1.958%

Live, 20170824

PLN
WIBOR (Warsaw Interbank Overnight Rate)
1.379*%
1.353%

Live, 20170824

RUB
RUONIA (Ruble Overnight Index Average)
8.570*%
7.751%

Fixing Period, 20170824

SEK
SEK STIBOR (Overnight Rate)
(0.546)%
(0.814)%

Live, 20170824

SGD
Singapore Dollar SOR (Swap Overnight) Rate
1.002*%
1.364%

Fixing Period, 20170824

ZAR
South Africa Benchmark Overnight Rate on Deposits (Sabor)
6.725%
7.141%

Live, 20170824

Prior Period Benchmark Rates

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.


Description of Fixing Component of IB's Benchmark calculation
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.
CNH HIBOR Overnight Fixing Rate For the calculation of interest, IB follows market convention and will not include fixings made on a CNH, CNY or HKD holiday.
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.

Notes

  1. Rates currently in use.
  2. Interbank rates updated through a time window and fixed at the end of the time window.

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 1.029% (BM - 0.5%)
140,000.01 + 1.279% (BM - 0.25%)
CAD 0 - 14,000 0%
14,000.01 + 0.25% (BM - 0.5%)
CHF 0 - 100,000 0%
100,000.01 + -1.031% (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 + -0.785% (BM - 0.25%)
EUR 0 - 100,000 0%
100,000.01 + -0.608% (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 + -0.277% (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 + 3.375% (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 + 3.57% (BM - 5%)
SEK 0 - 850,000 0%
850,000.01 + -0.796% (BM - 0.25%)
SGD 0 - 15,000 0%
15,000.01 + 0.002% (BM - 1%)
ZAR 0 - 150,000 0%
150,000.01 + 5.725% (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 3.029% (BM + 1.5%)
140,000.01 - 1,400,000 2.529% (BM + 1%)
1,400,000.01 - 140,000,000 2.029% (BM + 0.5%)
140,000,000.01 + 2.029% (BM + 0.5%) See note below
CAD 0 - 140,000 2.25% (BM + 1.5%)
140,000.01 - 1,400,000 1.75% (BM + 1%)
1,400,000.01 - 140,000,000 1.25% (BM + 0.5%)
140,000,000.01 + 1.25% (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 6.016% (BM + 5%)
625,000.01 - 6,250,000 6.016% (BM + 5%)
6,250,000.01 - 125,000,000 6.016% (BM + 5%)
125,000,000.01 + 6.016% (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 1.723% (BM + 1.5%)
80,000.01 - 800,000 1.223% (BM + 1%)
800,000.01 - 160,000,000 0.723% (BM + 0.5%)
160,000,000.01 + 0.723% (BM + 0.5%) See note below
HKD 0 - 780,000 2.569% (BM + 2.5%)
780,000.01 - 7,800,000 2.069% (BM + 2%)
7,800,000.01 - 780,000,000 1.569% (BM + 1.5%)
780,000,000.01 + 1.569% (BM + 1.5%) See note below
HUF 0 - 4,500,000,000 5.06% (BM + 5%)
4,500,000,000.01 + 5.06% (BM + 5%) See note below
ILS 0 - 80,000,000 5.35% (BM + 5%)
80,000,000.01 + 5.35% (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 10.375% (BM + 3%)
1,900,000.01 - 19,000,000 9.375% (BM + 2%)
19,000,000.01 - 1,900,000,000 8.875% (BM + 1.5%)
1,900,000,000.01 + 8.875% (BM + 1.5%) See note below
NOK 0 - 850,000 1.815% (BM + 1.5%)
850,000.01 - 8,500,000 1.315% (BM + 1%)
8,500,000.01 - 850,000,000 0.815% (BM + 0.5%)
850,000,000.01 + 0.815% (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 4.379% (BM + 3%)
70,000,000.01 + 5.379% (BM + 4%) See note below
RUB 0 - 660,000,000 13.57% (BM + 5%)
660,000,000.01 + 13.57% (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 2.502% (BM + 1.5%)
150,000.01 - 1,500,000 2.002% (BM + 1%)
1,500,000.01 - 150,000,000 1.502% (BM + 0.5%)
150,000,000.01 + 1.502% (BM + 0.5%) See note below
ZAR 0 - 1,500,000 8.225% (BM + 1.5%)
1,500,000.01 - 15,000,000 7.725% (BM + 1%)
15,000,000.01 - 1,500,000,000 7.475% (BM + 0.75%)
1,500,000,000.01 + 7.475% (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.