Interest Charged Examples

Examples

For questions about interest rate issues, please use the Inquiry Ticket or Chat system located in the Support menu of Account Management / Client Portal. When determining the quoted spread, IBKR will use the set benchmark rate or a benchmark rate of 0 for all benchmark rates less than 0.

For all below examples assume benchmark rates as follows:


Benchmark (BM) Rate
Reference Benchmark USD 5.32%
Reference Benchmark EUR 3.40%
Reference Benchmark CHF 1.32%
Reference Benchmark GBP 4.91%


Example 1 - Interest Charged To You (USD)


When you borrow money, we'll charge you daily interest on your borrowed money as follows:


Statement Reflects

USD Total
Ending Settled Cash -600,000

Interest Calculation

Reference Benchmark USD: 5.32%

Tier Balance Tier Spread Cash Interest in USD Calculation
0 - 100,000 1.50% -100,000 18.94 100,000 x (5.32% + 1.50%)/360
100,000.01 - 1,000,000 1.00% -500,000 87.78 500,000 x (5.32% + 1.00%)/360
1,000,000.01 - 50,000,000 0.75% 0 0.00
50,000,000.01 - 200,000,000 0.50% 0 0.00
> 200,000,000 1.50% 0 0.00
Total Debit Interest Charged 106.72


Example 2 - Interest Charged to You on a Negative Cash Balance


When you have a negative (debit) cash balance in your combined securities and commodities account and a negative (debit) balance in your UKL account, we'll charge you daily interest on the net debit balance as follows:


Statement Reflects

GBP Total
Ending Settled Cash -160,000

Calculate interest on universal account balance -160,000

Reference Benchmark GBP: 4.91%

Tier Balance Tier Spread Cash Interest in GBP Calculation
0 - 80,000 1.50% -80,000 14.05 80,000 x (4.91%+1.50%)/365
80,000.01 - 800,000 1.00% -80,000 12.95 80,000 x (4.91%+1.00%)/365
800,000.01 - 38,000,000 0.75% 0 0.00
38,000,000.01 - 150,000,000 0.50% 0 0.00
> 150,000,000 1.50% 0 0.00  
Total Debit Interest Charged 27.00


Example 3 - Interest Charged to You (EUR) on a net Negative Cash Balance


When your combined security and commodity accounts are negative (debit) and your UKL account is positive (credit) leading to a combined negative (debit) universal account balance interest will be calculated as follows:


Statement Reflects

EUR Total
Ending Settled Cash -10,000

Calculate interest on a net negative (debit) balance of 10,000

Reference Benchmark EUR: 3.40%

Tier Balance Tier Spread Cash Interest in EUR Calculation
0 - 90,000 1.50% -10,000 1.36 10,000 x (3.40%+1.50%)/360
90,000.01 - 900,000 1.00% 0 0.00  
900,000.01 - 44,000,000 0.75% 0 0.00  
44,000,000.01 - 180,000,000 0.50% 0 0.00  
> 180,000,000 1.50% 0 0.00  
Total Debit Interest Charged 1.36


Example 4 - Interest Calculation on Negative CHF Cash Balance


When you borrow money in CHF, interest will be calculated as follows:


Statement Reflects

CHF Total
Ending Settled Cash -600,000

Interest Calculation

Reference Benchmark CHF: 1.32%

Tier Balance Tier Spread Cash Interest in CHF Calculation
0 - 90,000 1.50% -90,000 7.05 90,000 x (1.32%+1.50%)/360
90,000.01 - 900,000 1.00% -510,000 32.86 510,000 x (1.32%+1.00%)/360
900,000.01 - 46,000,000 0.75% 0 0.00
46,000,000.01 - 180,000,000 0.50% 0 0.00
> 180,000,000 1.50% 0 0.00  
Total Debit Interest Charged 39.91

Interactive Brokers Canada Inc. is a member of the Canadian Investment Regulatory Organization (CIRO) and Member - Canadian Investor Protection Fund. Know Your Advisor: View the CIRO AdvisorReport. Trading of securities and derivatives may involve a high degree of risk and investors should be prepared for the risk of losing their entire investment and losing further amounts. Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. Interactive Brokers Canada Inc. is an order execution-only dealer and does not provide investment advice or recommendations regarding the purchase or sale of any securities or derivatives. Our registered office is located at 1800 McGill College Avenue, Suite 2106, Montreal, Quebec, H3A 3J6, Canada.


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