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The Margin Investor

Broker Margin Rates still all over the map

11/10/2013

2 Comments

 
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I just finished updating my comparison of broker margin rates. IB still offers (by far) the lowest margin rates, followed by OptionsHouse and TradeMonster.

After a several years of compiling this data on a regular basis, it still surprises me just how large a disparity there is between different online brokers. Brokers such as TradeStation, TD Ameritrade and ThinkOrSwim charge margin rates that are several multiples higher than other brokers. 

The lesson to be learned here is that it's worthwhile to shop around for a broker with a good mix of reasonable margin rates, low commissions, good execution and other factors that make a broker attractive.

2 Comments
Michael Wang
2/8/2014 08:57:46 pm

Do you know why IB is able to offer such a low rate? Why is it that there is no pressure for others to match (or beat) IB's low rates?

Reply
anton
12/15/2017 11:40:55 am

IB no longer has such a low margin rates! IB recently is doing very strange things to their margin requirements calculation which make it very very unsuitable for its clients.
On the other hand TA Ameritrade (TOS) is offering much more compatitive margin rates and it beats IB by far! So take that into account before jumping into IB.

Reply



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    Jason Apolee is a contributing editor to The Margin Investor where he focuses on news commentary and evaluating broker offerings.

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