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Examples

For questions about interest rate issues, please use the Inquiry Ticket or Chat system located in the Support menu of Account Management / Client Portal. 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.

For all below examples assume benchmark rates as follows:


Benchmark (BM) Rate
US Dollar Fed Funds Effective 2.18%
GBP LIBOR (Overnight Rate) 0.62%
EONIA (Euro Overnight Index Average) 0.0%
CHF LIBOR (Overnight Rate) 0.0%



Example 1 - Interest Charged To You (USD)


When you borrow money, we'll charge you daily interest on your borrowed money as follows:


Statement Reflects
USD Securities Commodities UKL Total
Ending Settled Cash -500,000 0 -100,000 -600,000

Interest Calculation

US Dollar Fed Funds Effective: 2.18%

Tier Balance Tier Rate Cash Interest in USD Calculation
0 - 100,000 1.50% -100,000 10.22 100,000 x (2.18% + 1.50%)/360
100,000.01 - 1,000,000 1.00% -500,000 44.17 500,000 x (2.18% + 1.00%)/360
1,000,000.01 - 3,000,000 0.50% 0 0
> 3,000,000 .30% 0 0
Total 54.39
 
Distribution Interest in USD Calculation
Debit interest charged (securities) 45.32 54.39 x (500,000/600,000)
Debit interest charged (UKL) 9.06 54.39 x (100,000/600,000)
Total 54.39



Example 2 - Interest Charged to You on a Negative Cash Balance


When you have a negative (debit) cash balance in your combined securities and commodities account and a negative (debit) balance in your UKL account, we'll charge you daily interest on the net debit balance as follows:


Statement Reflects
GBP Securities Commodities UKL Total
Ending Settled Cash -70,000 10,000 -100,000 -160,000
Commodity Maintenance Margin   0
Commodity Option Value   0    

Calculate interest on Integrated Investment account balance -160,000

GBP LIBOR (Overnight Rate): 0.62%

Tier Balance Tier Rate Cash Interest in GBP Calculation
0 - 80,000 1.50% 80,000 4.64 80,000 x (0.62%+1.50%)/365
80,000.01 - 800,000 1.00% 80,000 3.55 80,000 x (0.62%+1.00%)/365
> 800,000 0.50% 0 0  
Total 8.19
 
Distribution Interest in GBP Calculation
Debit interest charged (securities) 4.095 8.19 x (80,000/160,000)
Debit interest charged (UKL) 4.095 8.19 x (80,000/160,000)
Total 8.19



Example 3 - Interest Charged to You (EUR) on a net Negative Cash Balance


When your combined security and commodity accounts are negative (debit) and your UKL account is positive (credit) leading to a combined negative (debit) Integrated Investment account balance interest will be calculated as follows:


Statement Reflects
EUR Securities Commodities UKL Total
Ending Settled Cash -50,000 20,000 20,000 -10,000
Commodity Maintenance Margin   0    
Commodity Option Value   0    

Calculate interest on a net negative (debit) balance of 10,000

EONIA (Euro Overnight Index Average): 0.00%

Tier Balance Tier Rate Cash Interest in EUR Calculation
0 - 100,000 1.50% -10,000 0.42 10,000 x (0.0%+1.50%)/360
100,000.01 - 1,000,000 1.00% 0 0  
> 1,000,000 0.50% 0 0  
Total 0.42
 
Distribution Interest in EUR Calculation
Debit interest charged (securities) 0.42
Credit interest paid (UKL) 0 No credit interest is paid
Total 0.42



Example 4 - Interest Calculation on Negative CHF Cash Balance


When you borrow money in CHF, interest will be calculated as follows:


Statement Reflects
CHF Securities Commodities UKL Total
Ending Settled Cash -500,000 0 -100,000 -600,000

Interest Calculation

CHF LIBOR (Overnight Rate): 0.00%

Tier Balance Tier Rate Cash Interest in CHF Calculation
0 - 100,000 1.50% -100,000 4.17 100,000 x (0.00% + 1.50%)/360
100,000.01 - 1,000,000 1.00% -500,000 13.89 500,000 x (0.00% + 1.00%)/360
> 1,000,000 0.50% 0 0  
Total 18.06
 
Distribution Interest in CHF Calculation
Debit interest charged (securities) 15.05 18.06 x (500,000/600,000)
Debit interest charged (UKL) 3.01 18.06 x (100,000/600,000)
Total 18.06

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.


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