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. IBKR's interest model starts with the fixing rates and incorporates the dynamic market pricing to produce a midpoint or "Benchmark".
Around this benchmark, IBKR 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
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 interest rate fixings (such as LIBOR, Fed Funds, etc) and dynamic interbank rates determined from foreign exchange and money-markets to calculate an IBKR Reference Benchmark rate.
For more information about IBKR reference benchmark click here.
For information regarding the various benchmark fixings that contribute to the IBKR Reference Benchmark rate click here.
| Currency | Description for Effective Date 20181213 | Rate | Effective Date | |
|---|---|---|---|---|
| USD | Reference Benchmark USD
|
2.190% |
20181213 |
|
| USD | Reference Benchmark USD Libor
|
2.184% |
20181213 |
|
| AUD | Reference Benchmark AUD
|
1.866% |
20181213 |
|
| BRL | Reference Benchmark BRL
|
6.400% |
20181213 |
|
| CAD | Reference Benchmark CAD
|
1.385% |
20181213 |
|
| CHF | Reference Benchmark CHF
|
(0.803)% |
20181213 |
|
| CNH | Reference Benchmark CNH
|
1.248% |
20181213 |
|
| CZK | Reference Benchmark CZK
|
1.831% |
20181213 |
|
| DKK | Reference Benchmark DKK
|
(0.694)% |
20181213 |
|
| EUR | Reference Benchmark EUR
|
(0.435)% |
20181213 |
|
| GBP | Reference Benchmark GBP
|
0.801% |
20181213 |
|
| HKD | Reference Benchmark HKD
|
1.008% |
20181213 |
|
| HUF | Reference Benchmark HUF
|
(0.038)% |
20181213 |
|
| ILS | Reference Benchmark ILS
|
0.255% |
20181213 |
|
| INR | Reference Benchmark INR
|
9.600% |
20181213 |
|
| JPY | Reference Benchmark JPY
|
(0.274)% |
20181213 |
|
| KRW | Reference Benchmark KRW
|
1.750% |
20181213 |
|
| MXN | Reference Benchmark MXN
|
7.891% |
20181213 |
|
| NOK | Reference Benchmark NOK
|
0.751% |
20181213 |
|
| NZD | Reference Benchmark NZD
|
2.382% |
20181213 |
|
| PLN | Reference Benchmark PLN
|
1.485% |
20181213 |
|
| RUB | Reference Benchmark RUB
|
7.370% |
20181213 |
|
| SEK | Reference Benchmark SEK
|
(0.460)% |
20181213 |
|
| SGD | Reference Benchmark SGD
|
1.909% |
20181213 |
|
| ZAR | Reference Benchmark ZAR
|
6.517% |
20181213 |
|
| Prior Period Benchmark Rates | ||||
IBKR 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.
Client accounts with a Net Asset Value (NAV) of USD 100,000 or more are eligible to receive credit interest on long settled cash balances and short stock collateral values in their securities accounts.
Interest accrues and is payable on a daily basis. IBKR posts the interest payments on a monthly basis on the third business day of the following month.
IBKR uses a blended rate based on the tiers outlined in the table below. The tiers on which interest rates are based are subject to change without prior notification.
For balances held in CHF, CZK, DKK, EUR, JPY or SEK, IBKR currently applies an effective negative rate to long balances held. For other currencies in which the benchmark rate plus the interest rate paid is less than zero, the interest paid is 0%.
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 + | 1.69% (BM - 0.5%) | |
| AUD | 0 - 14,000 | 0% |
| 14,000.01 - 140,000 | 1.366% (BM - 0.5%) | |
| 140,000.01 + | 1.616% (BM - 0.25%) | |
| CAD | 0 - 14,000 | 0% |
| 14,000.01 + | 0.885% (BM - 0.5%) | |
| CHF | 0 - 100,000 | 0% |
| 100,000.01 + | -1.053% (BM - 0.25%) | |
| CNH | All | 0% |
| CZK | 0 - 2,500,000 | 0% |
| 2,500,000.01 + | 1.581% (BM - 0.25%) | |
| DKK | 0 - 700,000 | 0% |
| 700,000.01 + | -0.944% (BM - 0.25%) | |
| EUR | 0 - 100,000 | 0% |
| 100,000.01 + | -0.685% (BM - 0.25%) | |
| GBP | 0 - 8,000 | 0% |
| 8,000.01 + | 0.301% (BM - 0.5%) | |
| HKD | 0 - 78,000 | 0% |
| 78,000.01 + | 0.258% (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 + | -0.524% (BM - 0.25%) | |
| KRW | 0 - 12,000,000 | 0% |
| 12,000,000.01 + | 0.25% (BM - 1.5%) | |
| MXN | 0 - 190,000 | 0% |
| 190,000.01 + | 3.891% (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 + | 2.37% (BM - 5%) | |
| SEK | 0 - 850,000 | 0% |
| 850,000.01 + | -0.71% (BM - 0.25%) | |
| SGD | 0 - 15,000 | 0% |
| 15,000.01 + | 0.909% (BM - 1%) | |
| ZAR | 0 - 150,000 | 0% |
| 150,000.01 + | 5.517% (BM - 1%) |
When calculating rates, keep in mind that IBKR 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, 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.
| Currency | Tier | Rate Charged |
|---|---|---|
| USD | 0 - 100,000 | 3.69% (BM + 1.5%) |
| 100,000.01 - 1,000,000 | 3.19% (BM + 1%) | |
| 1,000,000.01 - 3,000,000 | 2.69% (BM + 0.5%) | |
| 3,000,000.01 - 200,000,000 | 2.49% (BM + 0.3%) | |
| 200,000,000.01 + | 2.49% (BM + 0.3%) See note below | |
| AUD | 0 - 140,000 | 3.366% (BM + 1.5%) |
| 140,000.01 - 1,400,000 | 2.866% (BM + 1%) | |
| 1,400,000.01 - 140,000,000 | 2.366% (BM + 0.5%) | |
| 140,000,000.01 + | 2.366% (BM + 0.5%) See note below | |
| CAD | 0 - 140,000 | 2.885% (BM + 1.5%) |
| 140,000.01 - 1,400,000 | 2.385% (BM + 1%) | |
| 1,400,000.01 - 140,000,000 | 1.885% (BM + 0.5%) | |
| 140,000,000.01 + | 1.885% (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 | |
| CNH | 0 - 625,000 | 6.248% (BM + 5%) |
| 625,000.01 - 6,250,000 | 6.248% (BM + 5%) | |
| 6,250,000.01 - 125,000,000 | 6.248% (BM + 5%) | |
| 125,000,000.01 + | 6.248% (BM + 5%) See note below | |
| CZK | 0 - 400,000,000 | 4.831% (BM + 3%) |
| 400,000,000.01 + | 4.831% (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 | 2.301% (BM + 1.5%) |
| 80,000.01 - 800,000 | 1.801% (BM + 1%) | |
| 800,000.01 - 160,000,000 | 1.301% (BM + 0.5%) | |
| 160,000,000.01 + | 1.301% (BM + 0.5%) See note below | |
| HKD | 0 - 780,000 | 3.508% (BM + 2.5%) |
| 780,000.01 - 7,800,000 | 3.008% (BM + 2%) | |
| 7,800,000.01 - 780,000,000 | 2.508% (BM + 1.5%) | |
| 780,000,000.01 + | 2.508% (BM + 1.5%) See note below | |
| HUF | 0 - 4,500,000,000 | 5% (BM + 5%) |
| 4,500,000,000.01 + | 5% (BM + 5%) See note below | |
| ILS | 0 - 80,000,000 | 5.255% (BM + 5%) |
| 80,000,000.01 + | 5.255% (BM + 5%) See note below | |
| INR | All | 12.6% (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 | 3.75% (BM + 2%) |
| 120,000,000.01 - 1,200,000,000 | 3.25% (BM + 1.5%) | |
| 1,200,000,000.01 - 24,000,000,000 | 2.75% (BM + 1%) | |
| 24,000,000,000.01 + | 2.75% (BM + 1%) See note below | |
| MXN | 0 - 1,900,000 | 10.891% (BM + 3%) |
| 1,900,000.01 - 19,000,000 | 9.891% (BM + 2%) | |
| 19,000,000.01 - 1,900,000,000 | 9.391% (BM + 1.5%) | |
| 1,900,000,000.01 + | 9.391% (BM + 1.5%) See note below | |
| NOK | 0 - 850,000 | 2.251% (BM + 1.5%) |
| 850,000.01 - 8,500,000 | 1.751% (BM + 1%) | |
| 8,500,000.01 - 850,000,000 | 1.251% (BM + 0.5%) | |
| 850,000,000.01 + | 1.251% (BM + 0.5%) See note below | |
| NZD | 0 - 150,000 | 3.882% (BM + 1.5%) |
| 150,000.01 - 1,500,000 | 3.382% (BM + 1%) | |
| 1,500,000.01 - 150,000,000 | 3.132% (BM + 0.75%) | |
| 150,000,000.01 + | 3.132% (BM + 0.75%) See note below | |
| PLN | 0 - 70,000,000 | 4.485% (BM + 3%) |
| 70,000,000.01 + | 5.485% (BM + 4%) See note below | |
| RUB | 0 - 660,000,000 | 12.37% (BM + 5%) |
| 660,000,000.01 + | 12.37% (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 | 3.409% (BM + 1.5%) |
| 150,000.01 - 1,500,000 | 2.909% (BM + 1%) | |
| 1,500,000.01 - 150,000,000 | 2.409% (BM + 0.5%) | |
| 150,000,000.01 + | 2.409% (BM + 0.5%) See note below | |
| ZAR | 0 - 1,500,000 | 8.017% (BM + 1.5%) |
| 1,500,000.01 - 15,000,000 | 7.517% (BM + 1%) | |
| 15,000,000.01 - 1,500,000,000 | 7.267% (BM + 0.75%) | |
| 1,500,000,000.01 + | 7.267% (BM + 0.75%) See note below |
Note: May be subject to a 1% surcharge applied to the spread if financing is not pre-arranged.