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:
2 comments:
The best broker for lowest margin
rate is InteractiveBrokers.com
http://individuals.interactivebrokers.com/en/accounts/fees/interest.php?ib_entity=llc
3.53% as of 7/18/2008
Fidelity is now down to 3.75% for margin loan balances in excess of $500,000. They have terrible rates at lower balance levels though.
I have not tried out TradingDirect or InteractiveBrokers. From the ones I have tried (12 in total) TradeKing generally offers the best rates followed by E*TRADE and SogoTrade.
Check out the full comparison table I put together at http://onlinebrokerreview.blogspot.com/2009/02/margin-rates.html
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