Interactive Brokers calculates an internal funding rate based on a combination of internationally recognized benchmarks on overnight deposits (ex: Fed funds, LIBOR) and real time market rates as traded, measured, in the interbank short-term currency swap markets, the world's largest and most liquid market.
While central banks and major money-center banks set and publish reference rates for interest dependent investments, these rates often do not reflect the exact investment costs/opportunities seen in interbank and commercial transactions. IB's interest model starts with the fixing rates and incorporates the dynamic market pricing to produce a midpoint or "Benchmark".
Around this benchmark, IB adds a spread to determine deposit and borrowing rates applicable to client balances in each currency. Spreads are tiered such that larger balances receive more favorable interest treatment by virtue of smaller spreads to the benchmark.
IB's benchmarks are shown below. Rates shown with a '*' represent prior day data in cases where the latest interest information has yet to be determined.
| Currency | Effective Benchmark Rate | Effective Rate (BM) | 1 Day Interbank Rates, Market Pricing2 | |
|---|---|---|---|---|
| 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
|
1.750*%
|
1.849%
| Fixed, 20170919 |
| CAD | Bank of Canada Overnight Lending Rate
|
0.969*%
|
1.070%
| Fixed, 20170919 |
| CHF | Swiss Franc LIBOR (Spot-Next rate)
|
(0.771)%
|
(1.042)%
| Fixed, 20170919 |
| CNY/CNH | CNH HIBOR Overnight Fixing Rate (TMA)
|
1.922*%
|
2.398%
| Fixed, 20170919 |
| CZK | Prag ON Interbank Offered Rate
|
0.280*%
|
(0.144)%
| Fixed, 20170919 |
| DKK | Danish Tom/Next Index
|
(0.585*)%
|
(0.765)%
| Fixed, 20170919 |
| EUR | EONIA (Euro Overnight Index Average)
|
(0.363*)%
|
(0.717)%
| Fixed, 20170919 |
| GBP | GBP LIBOR (Overnight Rate)
|
0.083*%
|
0.007%
| Fixed, 20170919 |
| HKD | HKD HIBOR (Overnight rate)
|
0.045*%
|
0.220%
| Fixed, 20170919 |
| HUF | Budapest Interbank Offered Rate
|
0.030*%
|
(0.177)%
| Fixed, 20170919 |
| ILS | Tel Aviv Interbank Offered O/N Rate
|
0.268*%
|
(0.071)%
| Fixed, 20170919 |
| INR | Central Bank of India Base Rate
|
9.700*%
|
N/A
| N/A
|
| JPY | JPY LIBOR (Spot-Next rate)
|
(0.023*)%
|
(0.421)%
| Fixed, 20170919 |
| KRW | Korean Won KORIBOR (1 week)
|
1.250*%
|
N/A
| N/A
|
| MXN | Mexican Interbank TIIE (28 day rate)
|
7.126*%
|
7.164%
| Fixed, 20170919 |
| NOK | Norwegian Overnight Weighted Average
|
0.374*%
|
0.360%
| Fixed, 20170919 |
| NZD | New Zealand Dollar Official Cash Daily Rate
|
1.895*%
|
1.947%
| Fixed, 20170919 |
| PLN | WIBOR (Warsaw Interbank Overnight Rate)
|
1.492*%
|
1.566%
| Fixed, 20170919 |
| RUB | RUONIA (Ruble Overnight Index Average)
|
7.710*%
|
7.293%
| Fixed, 20170919 |
| SEK | SEK STIBOR (Overnight Rate)
|
(0.514)%
|
(0.760)%
| Fixed, 20170919 |
| SGD | Singapore Dollar SOR (Swap Overnight) Rate
|
0.381*%
|
0.605%
| Fixed, 20170919 |
| ZAR | South Africa Benchmark Overnight Rate on Deposits (Sabor)
|
6.943%
|
6.962%
| Fixed, 20170919 |
| 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.
| Description of Fixing Component of IB's Benchmark calculation | |
|---|---|
| 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 | 1.25% (BM - 0.5%) | |
| 140,000.01 + | 1.5% (BM - 0.25%) | |
| CAD | 0 - 14,000 | 0% |
| 14,000.01 + | 0.469% (BM - 0.5%) | |
| CHF | 0 - 100,000 | 0% |
| 100,000.01 + | -1.021% (BM - 0.25%) | |
| CNY/CNH | All | 0% |
| CZK | 0 - 2,500,000 | 0% |
| 2,500,000.01 + | 0.03% (BM - 0.25%) | |
| DKK | 0 - 700,000 | 0% |
| 700,000.01 + | -0.835% (BM - 0.25%) | |
| EUR | 0 - 100,000 | 0% |
| 100,000.01 + | -0.613% (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 + | -0.273% (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 + | 3.126% (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 + | 2.71% (BM - 5%) | |
| SEK | 0 - 850,000 | 0% |
| 850,000.01 + | -0.764% (BM - 0.25%) | |
| SGD | 0 - 15,000 | 0% |
| 15,000.01 + | 0% (BM - 1%) | |
| ZAR | 0 - 150,000 | 0% |
| 150,000.01 + | 5.943% (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 | 3.25% (BM + 1.5%) |
| 140,000.01 - 1,400,000 | 2.75% (BM + 1%) | |
| 1,400,000.01 - 140,000,000 | 2.25% (BM + 0.5%) | |
| 140,000,000.01 + | 2.25% (BM + 0.5%) See note below | |
| CAD | 0 - 140,000 | 2.469% (BM + 1.5%) |
| 140,000.01 - 1,400,000 | 1.969% (BM + 1%) | |
| 1,400,000.01 - 140,000,000 | 1.469% (BM + 0.5%) | |
| 140,000,000.01 + | 1.469% (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 | 6.922% (BM + 5%) |
| 625,000.01 - 6,250,000 | 6.922% (BM + 5%) | |
| 6,250,000.01 - 125,000,000 | 6.922% (BM + 5%) | |
| 125,000,000.01 + | 6.922% (BM + 5%) See note below | |
| CZK | 0 - 400,000,000 | 3.28% (BM + 3%) |
| 400,000,000.01 + | 3.28% (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 | 1.583% (BM + 1.5%) |
| 80,000.01 - 800,000 | 1.083% (BM + 1%) | |
| 800,000.01 - 160,000,000 | 0.583% (BM + 0.5%) | |
| 160,000,000.01 + | 0.583% (BM + 0.5%) See note below | |
| HKD | 0 - 780,000 | 2.545% (BM + 2.5%) |
| 780,000.01 - 7,800,000 | 2.045% (BM + 2%) | |
| 7,800,000.01 - 780,000,000 | 1.545% (BM + 1.5%) | |
| 780,000,000.01 + | 1.545% (BM + 1.5%) See note below | |
| HUF | 0 - 4,500,000,000 | 5.03% (BM + 5%) |
| 4,500,000,000.01 + | 5.03% (BM + 5%) See note below | |
| ILS | 0 - 80,000,000 | 5.268% (BM + 5%) |
| 80,000,000.01 + | 5.268% (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 | 10.126% (BM + 3%) |
| 1,900,000.01 - 19,000,000 | 9.126% (BM + 2%) | |
| 19,000,000.01 - 1,900,000,000 | 8.626% (BM + 1.5%) | |
| 1,900,000,000.01 + | 8.626% (BM + 1.5%) See note below | |
| NOK | 0 - 850,000 | 1.874% (BM + 1.5%) |
| 850,000.01 - 8,500,000 | 1.374% (BM + 1%) | |
| 8,500,000.01 - 850,000,000 | 0.874% (BM + 0.5%) | |
| 850,000,000.01 + | 0.874% (BM + 0.5%) See note below | |
| NZD | 0 - 150,000 | 3.395% (BM + 1.5%) |
| 150,000.01 - 1,500,000 | 2.895% (BM + 1%) | |
| 1,500,000.01 - 150,000,000 | 2.645% (BM + 0.75%) | |
| 150,000,000.01 + | 2.645% (BM + 0.75%) See note below | |
| PLN | 0 - 70,000,000 | 4.492% (BM + 3%) |
| 70,000,000.01 + | 5.492% (BM + 4%) See note below | |
| RUB | 0 - 660,000,000 | 12.71% (BM + 5%) |
| 660,000,000.01 + | 12.71% (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 | 1.881% (BM + 1.5%) |
| 150,000.01 - 1,500,000 | 1.381% (BM + 1%) | |
| 1,500,000.01 - 150,000,000 | 0.881% (BM + 0.5%) | |
| 150,000,000.01 + | 0.881% (BM + 0.5%) See note below | |
| ZAR | 0 - 1,500,000 | 8.443% (BM + 1.5%) |
| 1,500,000.01 - 15,000,000 | 7.943% (BM + 1%) | |
| 15,000,000.01 - 1,500,000,000 | 7.693% (BM + 0.75%) | |
| 1,500,000,000.01 + | 7.693% (BM + 0.75%) See note below |
Note: May be subject to a 1% surcharge applied to the spread if financing is not pre-arranged.