Interactive Brokers uses internationally recognized benchmarks on overnight deposits as a basis for determining interest rates. We then apply a spread around the benchmark interest rate ("BM") in tiers, where larger cash balances receive increasingly better rates, to determine an effective rate.
The current day benchmarks are as follows:
| Currency | Benchmark Rate Fixings as of 20170726 | Benchmark Rate (BM)1 Rates as of 20170726 | 1 Day Interbank Rates, Market Pricing2 | |
|---|---|---|---|---|
| Used for Credit and Debit Rate Calculations | ||||
| 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)
|
1.179%
|
N/A
| N/A
|
| AUD | RBA Daily Cash Rate Target
|
1.500%
|
1.705%
| Fixed, 20170726 |
| CAD | Bank of Canada Overnight Lending Rate
|
0.750%
|
0.695%
| Fixing Period, 20170726 |
| CHF | Swiss Franc LIBOR (Spot-Next rate)
|
(0.782)%
|
(1.026)%
| Fixing Period, 20170726 |
| CNY/CNH | CNH HIBOR Overnight Fixing Rate (TMA)
|
2.345%
|
1.865%
| Fixed, 20170726 |
| CZK | Prag ON Interbank Offered Rate
|
0.120%
|
(1.406)%
| Fixing Period, 20170726 |
| DKK | Danish Tom/Next Index
|
(0.492)%
|
(0.753)%
| Fixing Period, 20170726 |
| EUR | EONIA (Euro Overnight Index Average)
|
(0.361)%
|
(0.595)%
| Fixing Period, 20170726 |
| GBP | GBP LIBOR (Overnight Rate)
|
0.223%
|
0.055%
| Fixing Period, 20170726 |
| HKD | HKD HIBOR (Overnight rate)
|
0.083%
|
0.062%
| Fixed, 20170726 |
| HUF | Budapest Interbank Offered Rate
|
0.050%
|
(0.364)%
| Fixing Period, 20170726 |
| ILS | Tel Aviv Interbank Offered O/N Rate
|
0.100%
|
(0.123)%
| Fixing Period, 20170726 |
| INR | Central Bank of India Base Rate
|
9.700%
|
N/A
| N/A
|
| JPY | JPY LIBOR (Spot-Next rate)
|
(0.032)%
|
(0.327)%
| Fixing Period, 20170726 |
| KRW | Korean Won KORIBOR (1 week)
|
1.250%
|
N/A
| N/A
|
| MXN | Mexican Interbank TIIE (28 day rate)
|
7.372%
|
6.961%
| Fixing Period, 20170726 |
| NOK | Norwegian Overnight Weighted Average
|
0.490%
|
0.277%
| Fixing Period, 20170726 |
| NZD | New Zealand Dollar Official Cash Daily Rate
|
1.750%
|
1.852%
| Fixing Period, 20170726 |
| PLN | WIBOR (Warsaw Interbank Overnight Rate)
|
1.590%
|
1.271%
| Fixing Period, 20170726 |
| RUB | RUONIA (Ruble Overnight Index Average)
|
8.940%
|
8.889%
| Fixed, 20170726 |
| SEK | SEK STIBOR (Overnight Rate)
|
(0.530)%
|
(0.822)%
| Fixing Period, 20170726 |
| SGD | Singapore Dollar SOR (Swap Overnight) Rate
|
0.773%
|
0.890%
| Fixed, 20170726 |
| ZAR | South Africa Benchmark Overnight Rate on Deposits (Sabor)
|
6.735%
|
7.219%
| Fixing Period, 20170726 |
| 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.
| Interest Benchmark Definitions | |
|---|---|
| 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. |
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.
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.
| 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% (BM - 0.5%) | |
| 140,000.01 + | 1.25% (BM - 0.25%) | |
| CAD | 0 - 14,000 | 0% |
| 14,000.01 + | 0.25% (BM - 0.5%) | |
| CHF | 0 - 100,000 | 0% |
| 100,000.01 + | -1.032% (BM - 0.25%) | |
| CNY/CNH | All | 0% |
| CZK | 0 - 2,500,000 | 0% |
| 2,500,000.01 + | -0.13% (BM - 0.25%) | |
| DKK | 0 - 700,000 | 0% |
| 700,000.01 + | -0.742% (BM - 0.25%) | |
| EUR | 0 - 100,000 | 0% |
| 100,000.01 + | -0.611% (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 + | -0.282% (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 + | 3.372% (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 + | 3.94% (BM - 5%) | |
| SEK | 0 - 850,000 | 0% |
| 850,000.01 + | -0.78% (BM - 0.25%) | |
| SGD | 0 - 15,000 | 0% |
| 15,000.01 + | 0% (BM - 1%) | |
| ZAR | 0 - 150,000 | 0% |
| 150,000.01 + | 5.735% (BM - 1%) |
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.
| 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% (BM + 1.5%) |
| 140,000.01 - 1,400,000 | 2.5% (BM + 1%) | |
| 1,400,000.01 - 140,000,000 | 2% (BM + 0.5%) | |
| 140,000,000.01 + | 2% (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 | 7.345% (BM + 5%) |
| 625,000.01 - 6,250,000 | 7.345% (BM + 5%) | |
| 6,250,000.01 - 125,000,000 | 7.345% (BM + 5%) | |
| 125,000,000.01 + | 7.345% (BM + 5%) See note below | |
| CZK | 0 - 400,000,000 | 3.12% (BM + 3%) |
| 400,000,000.01 + | 3.12% (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 | 2.583% (BM + 2.5%) |
| 780,000.01 - 7,800,000 | 2.083% (BM + 2%) | |
| 7,800,000.01 - 780,000,000 | 1.583% (BM + 1.5%) | |
| 780,000,000.01 + | 1.583% (BM + 1.5%) See note below | |
| HUF | 0 - 4,500,000,000 | 5.05% (BM + 5%) |
| 4,500,000,000.01 + | 5.05% (BM + 5%) See note below | |
| ILS | 0 - 80,000,000 | 5.1% (BM + 5%) |
| 80,000,000.01 + | 5.1% (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 | 10.372% (BM + 3%) |
| 1,900,000.01 - 19,000,000 | 9.372% (BM + 2%) | |
| 19,000,000.01 - 1,900,000,000 | 8.872% (BM + 1.5%) | |
| 1,900,000,000.01 + | 8.872% (BM + 1.5%) See note below | |
| NOK | 0 - 850,000 | 1.99% (BM + 1.5%) |
| 850,000.01 - 8,500,000 | 1.49% (BM + 1%) | |
| 8,500,000.01 - 850,000,000 | 0.99% (BM + 0.5%) | |
| 850,000,000.01 + | 0.99% (BM + 0.5%) See note below | |
| NZD | 0 - 150,000 | 3.25% (BM + 1.5%) |
| 150,000.01 - 1,500,000 | 2.75% (BM + 1%) | |
| 1,500,000.01 - 150,000,000 | 2.5% (BM + 0.75%) | |
| 150,000,000.01 + | 2.5% (BM + 0.75%) See note below | |
| PLN | 0 - 70,000,000 | 4.59% (BM + 3%) |
| 70,000,000.01 + | 5.59% (BM + 4%) See note below | |
| RUB | 0 - 660,000,000 | 13.94% (BM + 5%) |
| 660,000,000.01 + | 13.94% (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 | 2.273% (BM + 1.5%) |
| 150,000.01 - 1,500,000 | 1.773% (BM + 1%) | |
| 1,500,000.01 - 150,000,000 | 1.273% (BM + 0.5%) | |
| 150,000,000.01 + | 1.273% (BM + 0.5%) See note below | |
| ZAR | 0 - 1,500,000 | 8.235% (BM + 1.5%) |
| 1,500,000.01 - 15,000,000 | 7.735% (BM + 1%) | |
| 15,000,000.01 - 1,500,000,000 | 7.485% (BM + 0.75%) | |
| 1,500,000,000.01 + | 7.485% (BM + 0.75%) See note below |
Note: May be subject to a 1% surcharge applied to the spread if financing is not pre-arranged.