Margin loan broker and rates?

[dryath]

Hi guys,

Just wondering, for those of you who use a margin loan, who are you with? how much brokerage you pay on trades? and also what interest rate you are paying or that your broker offers (variable). Currently I'm with etrade, as its what i signed up with at 18 (copied my dad obv haha), 23 now though, so perhaps time to move on. im sure its got to be one of the most expensive though, so who are you all with? and any extra thoughts you might have?

the stats:
broker: etrade
IR: 8.79%
brokerage:

Internet trading​

Trades per month	up to $5,000	$5,001 - $10,000	$10,001 - $28,000	over $28,000
1[SUP]st[/SUP]	$19.95	$24.95	$29.95	0.11%
2[SUP]nd[/SUP] & subsequent	$19.95 up to $18,000 then 0.11%

Also, I know that brokers offer discounts on the IR for more trades/month etc, but this wont be relevant to me, since ill most likely be trading very rarely and holding for long term.

Thanks guys!

 

[tech/a]

http://www.interactivebrokers.com/en/p.php?f=margin#pmar-clear

Ive found these guys best.

 

[dryath]

http://www.interactivebrokers.com/en/p.php?f=margin#pmar-clear

Ive found these guys best.

Lol had a look, checked the IR offered for AUD.

5.082%
[FONT=Lucida Grande, Lucida Sans Unicode, Helvetica, Arial, Verdana, sans-serif](BM + 1.5%)[/FONT]

lol wtf 5% is this for real?? am i reading this right? =/ soooooo low, lower than any loan from anywhere i know in aus? same rate for margins? - unless im getting this number wrong, how are they able to do this?? crazzyyyyy

 

[tech/a]

Lol had a look, checked the IR offered for AUD.

5.082%
[FONT=Lucida Grande, Lucida Sans Unicode, Helvetica, Arial, Verdana, sans-serif](BM + 1.5%)[/FONT]

lol wtf 5% is this for real?? am i reading this right? =/ soooooo low, lower than any loan from anywhere i know in aus? same rate for margins? - unless im getting this number wrong, how are they able to do this?? crazzyyyyy

Volume

 

[So_Cynical]

http://www.interactivebrokers.com/en/p.php?f=margin#pmar-clear

Ive found these guys best.

The 100K minimum mite pull a few people up...still it is an amazing rate and makes me wonder why i didn't know about this before? that's some financial education i could of actually used.

 

[dryath]

The 100K minimum mite pull a few people up...still it is an amazing rate and makes me wonder why i didn't know about this before? that's some financial education i could of actually used.

Yeah this for sure,

But I mean, my god, compared to eturds 8.79% this is so so so amazing. Honestly I didnt expect to go under 8%, im just absolutely mind blown by this, haha.

Absolutely going to at least try this at some stage =)

 

[tech/a]

Yeah this for sure,

But I mean, my god, compared to eturds 8.79% this is so so so amazing. Honestly I didnt expect to go under 8%, im just absolutely mind blown by this, haha.

Absolutely going to at least try this at some stage =)

If your trading $100k + is $40 in a thousand really that bigger deal?
Anyway it's tax deductible

 

[skc]

If your trading $100k + is $40 in a thousand really that bigger deal?
Anyway it's tax deductible

If you are buying a house $500k+, is $40 in a thousand really that big a deal?

To the OP... you might want to check Interactive broker's share list for available leverage to make sure they are the right broker for you. Plus go to the IB thread and understand how your shares are held in trust by them (as opposed to under CHESS).

 

[tech/a]

Err no

Infact I've bought many houses 10 % higher than everyone else 15 yrs ago
And over the last 18 mths been selling some 10- 20% less than everyone else.

Something unusual happens when I do this.
I buy houses
I sell houses
Most others watch.
Because ---- it's too expensive
Because ---- I'm not selling at that price,I'll wait

I missed a block at auction once in 2002
2200 square meters---esplanade.
I went $800
Sold for $870k I thought the guy a nutter.
He subdivided it into 4 I'd calculated 3
He sold 4 at $350k each

Get my point

 

[skc]

Err no

Infact I've bought many houses 10 % higher than everyone else 15 yrs ago
And over the last 18 mths been selling some 10- 20% less than everyone else.

Something unusual happens when I do this.
I buy houses
I sell houses
Most others watch.
Because ---- it's too expensive
Because ---- I'm not selling at that price,I'll wait

I missed a block at auction once in 2002
2200 square meters---esplanade.
I went $800
Sold for $870k I thought the guy a nutter.
He subdivided it into 4 I'd calculated 3
He sold 4 at $350k each

Get my point

No. What has your property transactions got anything to do with the question at hand?

Given that you are buying a house, would you get a loan from a bank charging 8% interest, or would you get a loan from a bank charging 4% interest?

Or you are saying that it doesn't matter?!

 

[dryath]

If you are buying a house $500k+, is $40 in a thousand really that big a deal?

To the OP... you might want to check Interactive broker's share list for available leverage to make sure they are the right broker for you. Plus go to the IB thread and understand how your shares are held in trust by them (as opposed to under CHESS).

Great thanks very much for this info! - Will check into it =) Not too complicated I hope, haha.

Hadn't planned on investing too soon, but trying to keep my options open and know whats what for when i do!

 

[tech/a]

If you are buying a house $500k+, is $40 in a thousand really that big a deal?

You bought it up.
If I'm holding a property 10 or more years then yes
If I'm holding a year or two then no.
Do you go off shore and get a Japanese or USA loan?
Check their rates.

With IB you can margin any stock SPI FTSE etc.

 

[village idiot]

IB; great interest rate, but beware; if you have stocks on margin in your account , they pay you a 'payment in lieu of dividend' instead of an actual dividend for some proportion of the stocks, so if you playing by the book you cannot technically claim the franking credits. classic catch 22


as for how can they do it, they pay some of their customers cash rate less 1.5% and charge some other customers cash rate plus 1.5%. easy money, bigger margin than the banks, in fact i am convinced thats how they actually make most of their money

 

[dryath]

IB; great interest rate, but beware; if you have stocks on margin in your account , they pay you a 'payment in lieu of dividend' instead of an actual dividend for some proportion of the stocks, so if you playing by the book you cannot technically claim the franking credits. classic catch 22


as for how can they do it, they pay some of their customers cash rate less 1.5% and charge some other customers cash rate plus 1.5%. easy money, bigger margin than the banks, in fact i am convinced thats how they actually make most of their money

Thats actually really bad for how i intended to invest with them then. Since im currently in bottom tax bracket (FREE ) as im studying, not having the franking credits suckkkkssss

 

[MaxwellSmart]

Is that the only disadvantage to using IB?

My unit trust is planning to utilise their services.