IBKR Margin Rates

IBKR Margin Rates

When calculating rates, keep in mind that IBKR uses a blended rate based on the tiers below. For example, for a balance over USD 1,000,000, 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, IBKR will use the set benchmark rate or a benchmark rate of 0 for all benchmark rates less than 0.

IBKR 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.

CurrencyBM Rates as of 11/04/2024Benchmark (BM)Debit Interest p.a.
Flag us
USD
5.330%Reference Benchmark USD#VALUE!
Flag eu
EUR
3.921%Reference Benchmark EUR0 ≤ 90,000: 5.421%
90,000 ≤ 900,000: 4.921%
900,000 ≤ 44,000,000: 4.671%
44,000,000 ≤ 180,000,000: 4.421%
> 180,000,000: 4.421%
Flag ae
AED
5.161%Reference Benchmark AED0 ≤ 350,000: 7.661%
350,000 ≤ 3,500,000: 7.161%
3,500,000 ≤ 350,000,000: 6.661%
> 350,000,000: 6.661%
Flag au
AUD
4.306%Reference Benchmark AUD0 ≤ 150,000: 5.806%
150,000 ≤ 1,500,000: 5.306%
1,500,000 ≤ 75,000,000: 5.056%
75,000,000 ≤ 300,000,000: 4.806%
> 300,000,000: 4.806%
Flag ca
CAD
4.842%Reference Benchmark CAD0 ≤ 130,000: 6.342%
130,000 ≤ 1,300,000: 5.842%
1,300,000 ≤ 64,000,000: 5.592%
64,000,000 ≤ 260,000,000: 5.342%
> 260,000,000: 5.342%
Flag ch
CHF
1.348%Reference Benchmark CHF0 ≤ 90,000: 2.848%
90,000 ≤ 900,000: 2.348%
900,000 ≤ 46,000,000: 2.098%
46,000,000 ≤ 180,000,000: 1.848%
> 180,000,000: 1.848%
Flag cn
CNH
6.599%Reference Benchmark CNH0 ≤ 700,000: 10.599%
700,000 ≤ 7,000,000: 9.599%
7,000,000 ≤ 350,000,000: 9.099%
> 350,000,000: 8.599%
Flag cz
CZK
5.592%Reference Benchmark CZK0 ≤ 400,000,000: 8.592%
> 400,000,000: 8.592%
Flag dk
DKK
3.519%Reference Benchmark DKK0 ≤ 120,000,000: 6.519%
> 120,000,000: 6.519%
Flag gb
GBP
5.164%Reference Benchmark GBP0 ≤ 80,000: 6.664%
80,000 ≤ 800,000: 6.164%
800,000 ≤ 38,000,000: 5.914%
38,000,000 ≤ 150,000,000: 5.664%
> 150,000,000: 5.664%
Flag hk
HKD
3.953%Reference Benchmark HKD0 ≤ 780,000: 6.453%
780,000 ≤ 7,800,000: 5.953%
7,800,000 ≤ 780,000,000: 5.453%
> 780,000,000: 5.453%
Flag hu
HUF
8.004%Reference Benchmark HUF0 ≤ 4,500,000,000: 13.004%
> 4,500,000,000: 13.004%
Flag il
ILS
4.136%Reference Benchmark ILS0 ≤ 80,000,000: 9.136%
> 80,000,000: 9.136%
Flag in
INR
6.640%Reference Benchmark INRAll: 9.640%
Flag jp
JPY
-0.043%Reference Benchmark JPY0 ≤ 11,000,000: 1.500%
11,000,000 ≤ 114,000,000: 1.000%
114,000,000 ≤ 5,700,000,000: 0.750%
5,700,000,000 ≤ 23,000,000,000: 0.750%
> 23,000,000,000: 0.750%
Flag kr
KRW
3.500%Reference Benchmark KRW0 ≤ 120,000,000: 5.500%
120,000,000 ≤ 1,200,000,000: 5.000%
1,200,000,000 ≤ 24,000,000,000: 4.500%
> 24,000,000,000: 4.500%
Flag mx
MXN
10.741%Reference Benchmark MXN0 ≤ 2,000,000: 13.741%
2,000,000 ≤ 20,000,000: 12.741%
20,000,000 ≤ 2,000,000,000: 12.241%
> 2,000,000,000: 12.241%
Flag no
NOK
4.398%Reference Benchmark NOK0 ≤ 900,000: 5.898%
900,000 ≤ 9,000,000: 5.398%
9,000,000 ≤ 450,000,000: 5.148%
450,000,000 ≤ 1,800,000,000: 4.898%
> 1,800,000,000: 4.898%
Flag nz
NZD
5.217%Reference Benchmark NZD0 ≤ 150,000: 6.717%
150,000 ≤ 1,500,000: 6.217%
1,500,000 ≤ 150,000,000: 5.967%
> 150,000,000: 5.967%
Flag pl
PLN
5.670%Reference Benchmark PLN0 ≤ 70,000,000: 8.670%
> 70,000,000: 8.670%
Flag ru
RUB
15.640%Reference Benchmark RUB0 ≤ 660,000,000: 20.640%
> 660,000,000: 20.640%
Flag sa
SAR
4.918%Reference Benchmark SAR0 ≤ 350,000: 7.418%
350,000 ≤ 3,500,000: 6.918%
3,500,000 ≤ 350,000,000: 6.418%
> 350,000,000: 6.418%
Flag se
SEK
3.805%Reference Benchmark SEK0 ≤ 900,000: 5.305%
900,000 ≤ 9,100,000: 4.805%
9,100,000 ≤ 454,000,000: 4.555%
454,000,000 ≤ 1,820,000,000: 4.305%
> 1,820,000,000: 4.305%
Flag sg
SGD
3.266%Reference Benchmark SGD0 ≤ 140,000: 4.766%
140,000 ≤ 1,400,000: 4.266%
1,400,000 ≤ 68,000,000: 4.016%
68,000,000 ≤ 270,000,000: 3.766%
> 270,000,000: 3.766%
Flag tr
TRY
34.511%Reference Benchmark TRY0 ≤ 250,000,000: 39.511%
> 250,000,000: 40.511%
Flag za
ZAR
7.268%Reference Benchmark ZAR0 ≤ 1,500,000: 8.768%
1,500,000 ≤ 15,000,000: 8.268%
15,000,000 ≤ 1,500,000,000: 8.018%
> 1,500,000,000: 8.018%

IBKR’s benchmark for each currency is the reference rate around which our credit, debit, stock loan and other interest rate linked calculations are determined. IBKR uses a combination of internationally recognized reference rates (such Fed Funds), bank deposit rates, and dynamic interbank rates determined from foreign exchange and money markets to calculate an IBKR Reference Benchmark rate.

CurrencyBenchmark (BM)BM Rates as of 12/04/2024
Flag us
USD
Reference Benchmark USD5.330%
Flag eu
EUR
Reference Benchmark EUR3.912%
Flag ae
AED
Reference Benchmark AED5.161%
Flag au
AUD
Reference Benchmark AUD4.314%
Flag bg
BGN
Reference Benchmark BGN3.780%
Flag br
BRL
Reference Benchmark BRL10.650%
Flag ca
CAD
Reference Benchmark CAD4.904%
Flag ch
CHF
Reference Benchmark CHF1.293%
Flag cn
CNH
Reference Benchmark CNH5.430%
Flag cz
CZK
Reference Benchmark CZK5.617%
Flag dk
DKK
Reference Benchmark DKK3.518%
Flag gb
GBP
Reference Benchmark GBP5.166%
Flag hk
HKD
Reference Benchmark HKD3.985%
Flag hu
HUF
Reference Benchmark HUF8.022%
Flag il
ILS
Reference Benchmark ILS4.098%
Flag in
INR
Reference Benchmark INR6.690%
Flag jp
JPY
Reference Benchmark JPY-0.109%
Flag kr
KRW
Reference Benchmark KRW3.500%
Flag mx
MXN
Reference Benchmark MXN10.815%
Flag no
NOK
Reference Benchmark NOK4.422%
Flag nz
NZD
Reference Benchmark NZD5.357%
Flag pl
PLN
Reference Benchmark PLN5.643%
Flag ro
RON
Reference Benchmark RON5.791%
Flag ru
RUB
Reference Benchmark RUB15.730%
Flag sa
SAR
Reference Benchmark SAR4.918%
Flag se
SEK
Reference Benchmark SEK3.826%
Flag sg
SGD
Reference Benchmark SGD3.372%
Flag tr
TRY
Reference Benchmark TRY34.511%
Flag za
ZAR
Reference Benchmark ZAR7.447%

Methodology for Determining Effective Rates

BACKGROUND

In determining the interest that account holders are paid on cash credit balances and charged on debit balances, each currency is assigned an IBKR Reference Benchmark rate. The IBKR Reference Benchmark rate is determined from short-term market rates but capped above/below widely used external reference rates or, where appropriate, bank deposit rates. This page explains how IBKR Reference Benchmark rates are determined.

Reference Rates

Reference rates are determined using a three-step process. The rates are capped above/below traditional external reference rates. For currencies and IBKR affiliates where Forex swap market pricing does not affect the rates we pay and charge our customers, Step 1 is omitted from the final rate determination.

1. Market implied rates

For market pricing, we utilize short-term Forex swap markets. Since most of the transactions involve the US dollar, Forex swap prices of currencies vs. the US dollar are sampled over a pre-determined time period referred to as the “Fixing Time Window” that is intended to be representative of liquid trading hours and primary turnover. The specific swap tenor and fixing windows used depend on the currency. We use the best bid and ask from a group of up to 12 of the largest Forex dealing banks to calculate the implied non-USD short-term rates – generally Overnight (T/T+1), Tom Next (T+1/T+2) or Spot Next (T+2/T+3). At the Fixing Time Window close, these calculations are sorted with the lowest and highest rates disregarded and the remainder averaged to determine the market implied reference rate.

2. Traditional external benchmark reference rates

For traditional benchmarks, we utilize published reference rates and, where appropriate, bank deposit rates. These rates generally are determined by either bank survey or actual transactions. The Hong Kong Inter-Bank Offered Rate (HIBOR), for example, is determined by surveying a panel of banks for the rate at which they could borrow funds from other banks at a specific time each day. In contrast, the US dollar Fed Funds effective rate is calculated as the weighted average of interbank lending rates transacted in the Fed Funds market.

The reform on interest rate benchmarks (IBOR reform), launched in 2013 by the G20 nations and conducted by regulatory authorities and public and private sector working groups, is gradually replacing bank survey based rates with new transaction driven reference rates.

3. IBKR Reference Benchmark Rates

The final IBKR Reference Benchmark rates are then determined by using the market implied reference rate, as described in 1. above, but capped by a certain amount above/below the traditional external benchmark reference rate as described in 2. above. For currencies and IBKR affiliates where Forex swap market pricing is not relevant, the final IBKR Reference Benchmark rates are determined by using traditional benchmarks or bank deposit rates, capped as above. The caps can change at any time without explicit prior notice and are listed in the table below, along with relevant currency and benchmark reference rates.

Examples

a. Assume the market implied overnight rate for GBP is 0.55%. The Sterling Overnight Index Average (SONIA) reference rate is 0.65%. The effective rate is then equal to the market implied rate of 0.55%, as it is still within the 1.00% cap around the SONIA reference rate at 0.65%.

b. If, for example, the market implied rate for CNH was 4.5% but the overnight CNH reference rate for the same period was 1.0%, the effective rate would be capped at 2.0% above the CNH reference rate, or 3.0% (1.0% reference rate + 2.0% cap).

CurrencyBenchmark Description Cap Below1Cap Above1
USDFed Funds Effective (Overnight rate)0,00%0,00%
AEDEIBOR, Emirates Interbank Offered Rate3,00%3,00%
AUDRBA Daily Cash Rate Target1,00%1,00%
CADBank of Canada Overnight Lending Rate1,00%1,00%
CHFSwiss Average Rate Overnight (SARON)1,00%1,00%
CNY/CNHCNH HIBOR Overnight Fixing Rate (TMA)2,00%2,00%
CZKPrague ON Interbank Offered Rate1,00%1,00%
DKKDanish Tom/Next Index1,00%1,00%
EUREuro Short-Term Rate (€STR)1,00%1,00%
GBPSterling Overnight Index Average (SONIA)1,00%1,00%
HKDHKD HIBOR (Overnight rate)1,00%1,00%
HUFBudapest Interbank Offered Rate1,00%1,00%
ILSTel Aviv Interbank Offered O/N Rate1,00%1,00%
INRCentral Bank of India Base Rate0,00%0,00%
JPYTokyo Overnight Average Rate (TONAR)1,00%1,00%
KRWKorean Won KORIBOR (1 week)0,00%0,00%
MXNMexican Interbank TIIE (28 day rate)3,00%3,00%
NOKNorwegian Overnight Weighted Average1,00%1,00%
NZDNew Zealand Dollar Official Cash Daily Rate1,00%1,00%
PLNWIBOR (Warsaw Interbank Overnight Rate)1,00%1,00%
RUBRUONIA (Ruble Overnight Index Average)3,00%3,00%
SARSAIBOR Saudi Arabia Interbank Offered Rate3,00%3,00%
SEKSEK STIBOR (Overnight Rate)1,00%1,00%
SGDSingapore Dollar SOR (Swap Overnight) Rate1,00%1,00%
TRYTRLIBOR (Turkish Lira Overnight Interbank offered rate)100,00%100,00%
ZARSouth Africa Benchmark Overnight Rate on Deposits (Sabor)3,00%3,00%

1 Caps or the deviation for the effective rate allowed above or below the benchmark fixing can change at any time without explicit prior notice.