Last November I wrote a post about how Fidelity offers a low margin rate for wealthy investors. As of today, July 14, 2008, the lowest margin rate provided by Fidelity is 4.00%. An investor would need to maintain a debit balance of at least $500,000 in order to receive this low margin rate.
Although the Fidelity margin rate is quite low, I recently discovered that TradingDirect offers a far lower margin rate. TradingDirect offers a margin rate as low as 2.75% for debite balances of over $1,000,000. Here is a chart showing the TradingDirect margin rates as of today: