Client accounts may receive credit interest on long settled cash balances in their securities accounts.
Accounts with a Net Asset Value (NAV) of USD 100,000 (or equivalent) or more are paid interest at the full rate for which they are eligible. Accounts with NAV of less than USD 100,000 (or equivalent) receive interest at rates proportional to the size of the account.
For example, an account with a NAV of USD 50,000 earns credit interest at a rate equal to one-half the rate paid by IBKR to accounts with a NAV of USD 100,000 or more.
Interest accrues daily. 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, JPY, or RUB, IBKR may apply an effective negative rate to long balances held. The negative rate applied to accounts holding these currencies is the same regardless of account size. For other currencies in which the effective rate is less than zero, the interest paid is 0%.
Clients holding large cash positions with both substantial long and short balances may benefit from a special cash investment program offered by IBKR that utilises forex exchange transactions known as FX swaps.
Eligible IBKR clients can subscribe to an auto-swap program that authorises IBKR to execute transactions systematically in the foreign exchange market. These transactions can improve the overall interest rate benefits/costs for clients with large long/short positions in a multi-currency account. This program offers no benefit to accounts with a single currency or all currency balances that are either long or short.
An FX swap is a transaction strategy wherein one enters into a currency trade for one value date (typically the date following the trade date, in FX jargon, 'Tomorrow', or 'TOM') and reverses the transaction on the subsequent date (typically, trade date + 2 days, or 'NEXT'). The price differential between the two transactions represents the interbank differential of the two currencies' independent yield curves. The FX swap market, also called an FX roll, is a very rate efficient market and qualifying clients may benefit from a netting effect on their pre-trade balances combined with the transaction proceeds. The investor's cash is invested via the swap market, typically with 2-10 bps spreads per currency, rather than being held in IBKR's default mechanisms for coding and protecting client cash.
This strategy is considered a sophisticated investment strategy. It is only available to qualifying investors with cash balances of at least 10M USD or equivalent and those with a "professional" categorisation in the UK, EU, and most regulatory jurisdictions across the Asia-Pacific. In the US, investors must qualify as an Eligible Contract Participant (ECP) to enroll in the program.
|USD||0 ≤ 10,000||0%|
|> 10,000||4.080% (BM - 0.5%)|
|AED||0 ≤ 35,000||0%|
|> 35,000||3.515% (BM - 0.75%)|
|AUD||0 ≤ 14,000||0%|
|14,000 ≤ 140,000||2.285% (BM - 0.5%)|
|> 140,000||2.535% (BM - 0.25%)|
|CAD||0 ≤ 13,000||0%|
|> 13,000||3.954% (BM - 0.5%)|
|CHF||0 ≤ 10,000||0%|
|> 10,000||0.291% (BM - 0.5%)|
|CNH||0 ≤ 65,000||0%|
|CZK||0 ≤ 250,000||0%|
|> 250,000||4.859% (BM - 2%)|
|DKK||0 ≤ 75,000||0%|
|> 75,000||1.565% (BM - 0.5%)|
|EUR||0 ≤ 10,000||0%|
|> 10,000||1.349% (BM - 0.5%)|
|GBP||0 ≤ 8,000||0%|
|> 8,000||3.381% (BM - 0.5%)|
|HKD||0 ≤ 78,000||0%|
|> 78,000||0.448% (BM - 0.75%)|
|HUF||0 ≤ 3,000,000||0%|
|> 3,000,000||14.593% (BM - 3%)|
|JPY||0 ≤ 5,000,000||0%|
|> 5,000,000||-0.502% (BM - 0.25%)|
|KRW||0 ≤ 12,000,000||0%|
|> 12,000,000||2.000% (BM - 1.5%)|
|MXN||0 ≤ 200,000||0%|
|> 200,000||6.241% (BM - 4%)|
|NOK||0 ≤ 100,000||0%|
|> 100,000||0.655% (BM - 2%)|
|NZD||0 ≤ 15,000||0%|
|> 15,000||1.727% (BM - 2.5%)|
|PLN||0 ≤ 400,000||0%|
|> 400,000||4.816% (BM - 2%)|
|RUB*||0 ≤ 750,000||- 11.00%|
|> 750,000||- 11.00%|
|SAR||0 ≤ 35,000||0%|
|> 35,000||4.484% (BM - 0.75%)|
|SEK||0 ≤ 110,000||0%|
|> 110,000||1.766% (BM - 0.5%)|
|SGD||0 ≤ 14,000||0%|
|> 14,000||2.743% (BM - 1%)|
|TRY||0 ≤ 90,000||0%|
|ZAR||0 ≤ 150,000||0%|
|> 150,000||6.859% (BM - 1%)|
* NOTE: AS of July 28, 2022, any long or short RUB balances in an account auto-convert to USD or EUR, depending on the entity holding an account. Visit our Knowledge Base for additional info.
Interactive Brokers Canada Inc. is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and Member - Canadian Investor Protection Fund. Know Your Advisor: View the IIROC AdvisorReport. Trading of securities and derivatives may involve a high degree of risk and investors should be prepared for the risk of losing their entire investment and losing further amounts. Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. Interactive Brokers Canada Inc. is an order execution-only dealer and does not provide investment advice or recommendations regarding the purchase or sale of any securities or derivatives. Our registered office is located at 1800 McGill College Avenue, Suite 2106, Montreal, Quebec, H3A 3J6, Canada.
Know Your Advisor: View the IIROC AdvisorReport