Interactive Brokers Raising Rates on Top Tier Margin Loans to Slow Loan Growth
11 January 2018 - 2:09AM
Business Wire
Company Continues to be a Leader in
Providing Low Margin Fees
Interactive Brokers Group, Inc. (NASDAQ GS: IBKR) an automated
global electronic broker, announced that, effective January 22, the
company plans to increase the interest it charges on its top tier
USD based margin loans above $3,000,000 by five basis points. The
rate on the largest loan amounts will rise from 1.67% to 1.72%1.
Rates will remain unchanged on smaller loans.
“IBKR is increasing the interest rate charged on our largest
loans as our total margin loans outstanding are about to exceed $30
billion,” said Interactive Brokers Group Chairman and CEO Thomas
Peterffy. “The company is taking this conservative step to slow the
growth of margin loans.”
One of the lowest cost online brokers, Interactive Brokers has
consistently provided clients with low margin rates. IBKR’s
complete schedule of margin loan rates is as follows:
Loan Amount
Rate Charged
Current Rate*
$0-$100,000 Benchmark Rate + 1.5% 2.92% $100,000.01-$1,000,000
Benchmark Rate + 1.0% 2.42% $1,000,000.01-$3,000,000 Benchmark Rate
+ 0.5% 1.92% $3,000,000 + Benchmark Rate + 0.3% 1.72%
*Currently available rates for USD based loans. Other currency
loans are available at comparable rates.
Separately, the firm is expected to take a charge of
approximately $84 million to fourth quarter earnings due to the
recent enactment of the Tax Cuts and Jobs Act.
About Interactive Brokers Group, Inc.:
Interactive Brokers Group affiliates provide automated trade
execution and custody of securities, commodities and foreign
exchange around the clock on over 120 markets in numerous countries
and currencies from a single IB Universal AccountSM to customers
worldwide. We service individual investors, hedge funds,
proprietary trading groups, financial advisors and introducing
brokers. Our four decades of focus on technology and automation has
enabled us to equip our customers with a uniquely sophisticated
platform to manage their investment portfolios at the lowest cost
according to Barron’s Best Online Brokers review, March 20, 2017.
We strive to provide our customers with advantageous execution
prices and trading, risk and portfolio management tools, research
facilities and investment products, all at low prices, positioning
them to achieve superior returns on investments.
________________________________
1. The margin benchmark rate, and therefore the total interest
rate you are charged, may change without notice; the current rates
are available at www.ibkr.com/interest.
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version on businesswire.com: http://www.businesswire.com/news/home/20180110005763/en/
For Interactive Brokers Group, Inc.Investors:Nancy Stuebe,
203-618-4070orMedia:Kalen Holliday, 203-913-1369
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