1. What is IBKR Margin Interest?

The IBKR (Interactive Brokers) Margin Interest is the interest charged on funds borrowed to trade securities on margin. The rate is tiered based on the amount borrowed and currency.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( Borrowed \) — Amount borrowed in USD
• \( IBKR\ Tiered\ Rate \) — Current IBKR margin rate (as decimal)

Explanation: The calculation assumes the rate remains constant for the period. Actual interest may vary with rate changes.

3. Importance of Margin Interest Calculation

Details: Calculating margin interest helps traders understand the true cost of leveraged positions and make informed decisions about margin usage.

4. Using the Calculator

Tips: Enter the borrowed amount in USD and the current IBKR tiered rate (as decimal, e.g., 0.035 for 3.5%). Check IBKR's website for current rates.

5. Frequently Asked Questions (FAQ)

Q1: How often is margin interest charged?
A: IBKR typically charges margin interest daily, but it's accrued and billed monthly.

Q2: Are IBKR margin rates fixed?
A: No, rates are variable and based on benchmark rates plus a spread. They change with market conditions.

Q3: How can I reduce margin interest?
A: Borrow less, maintain higher account equity, or qualify for better rate tiers by increasing borrowed amounts.

Q4: Is this calculator accurate for all currencies?
A: This calculator assumes USD. For other currencies, use the appropriate tiered rate for that currency.

Q5: Does this include other fees?
A: No, this calculates only margin interest. Other fees like commissions may apply to margin trades.