STOCKS Interest Rates



The information below does not apply to Futures and Forex accounts, and is only available for Equities Cash and Non-Pattern Daytrading Margin accounts.

All rates listed on this page are subject to change at any time, without prior notice.

Margin Interest: 7.45% APR
Margin account holders have the ability to borrow money at the margin interest rate above. Borrowing money on margin lets you leverage securities you already own to purchase additional securities. Accounts are not charged for the use of margin when borrowing money throughout the day. The margin interest rate is only charged when you borrow money to hold securities overnight. Therefore, if the market value of securities in your account exceeds your account value overnight, you are using margin.

Credit Interest: 0% APR
Clients are paid interest each month on any free cash that remains in their cash account. Pattern-day trader Margin accounts are not permitted for money market sweeps per FINRA rule 4210.

Money Market Rates: see below
Customers can elect to have free cash swept into a separate money market account at the end of each day to earn a higher interest rate with Reich & Tang. If a specific fund is not selected when opening a new account, the sweep feature will be turned off on the account and free cash will sit dormant in the account. To switch between the available money market funds below, simply email [email protected]


Reich & Tang Fund Name Symbol 1 Day Yield
  Daily Income Fund – Money Market Portfolio DRTXX 0.01%
  Daily Dollar International 1 DDIRZ 0.01%
Updated on 06/05/14

 

Margin and Credit Interest Calculations:
Interest charges and credits are calculated on the net daily debit or credit balance in your account. Interest incurred and interest earned will be posted monthly to your account and is calculated on a 360-day year.
The applicable interest period is from the first day of each month to the last. Any free credit balances will be offset against any debit in the margin account, and interest will be charged on the net debit balance, if any.


Example

Account value: $10,000
Margin Interest rate: 7.95% APR
Transaction: $20,000 of XYZ purchased on 1/01 and sold on 1/15

  1. Take the amount of money borrowed and multiply it by the interest rate:
    10,000 * .0795 = 795
  2. Take the product and divide it by the number of days in the year:
    795 / 360 = 2.21
  3. Multiply this result by the number of days XYZ was held on margin:
    2.21 * 15 = 33.15

It would cost $33.15 to borrow $10,000 for 15 days.

1. These funds are only available to residents of the state listed in the fund name.

 

Money Market Sweep Program:

For customers with balances in a bank deposit account as part of the FDIC Sweep Program or shares of a money market mutual fund in which you have a beneficial interest, those balances or shares may be liquidated on your order and the proceeds returned to your account or remitted to you in accordance with the applicable prospectus and/or Terms and Conditions of the program.

For customers participating in the FDIC Sweep Program, the FDIC Sweep Program allows your cash balance to be eligible for insurance protection through the FDIC up to the maximum applicable insurance limits. Customers may obtain information about FDIC, by contacting the FDIC at 1-877-275-3342, 1-800-925-4618 (TDD) or by visiting www.fdic.gov. Deposit Account balances in the FDIC Sweep Program are not protected by SIPC or any other excess coverage by Apex Clearing Corporation. Deposit Account balances are protected as established by current applicable laws regulated by the FDIC.

Customers may obtain information about SIPC, including the SIPC brochure, by contacting SIPC at 202-371-8300 or by visiting www.SIPC.org.


 
 

 

MB Trading, IB member FINRA, SIPC; MB Trading Futures, Inc. RFED/IB and member NFA. Trading in futures, options and Forex is speculative in nature and not appropriate for all investors. Investors should only use risk capital when trading futures, options and Forex because there is always the risk of substantial loss. MBTFS and MBTFX are sometimes referred to collectively herein as "MB Trading."

1MB Trading FX offers two Forex pricing models. Both models employ our RFED to client facing execution system with slightly different pricing and markup models.  For purpose of clarity the two pricing models (Plan 1 and Plan 2) both operate on the same technology.  The underlying technology is named The MB Trading Electronic Xrossing Network, abbreviated as EXN for the remainder of this disclaimer.  The main differentiator between the models is twofold.

A.    Difference in amount of markup or markdown of liquidity partner (banks) quotes when displayed to clients.
B.    Commission Structure charged to client

Plan 1 or “Pay for Limit” plan employs the EXN technology in a commission model. This model charges a client 2.50 in their base currency per 100k of executed currency for market orders and pays a client .50 of base currency for posted, executed limit orders. In the Pay for Limits model, the term "Payment for Limit Order" refers to a non-market order which is not immediately executable and rests on the internal limit order book for some period of time, thus adding liquidity when another order of equal or greater value fills with the resting order.

Free Commission Plan employs the EXN technology in a markup only plan, which means that MB Trading receives a markup embedded in the spread as compensation. This plan does not add an additional commission, does not pay the client a rebate for posted liquidity as Plan 1 does yet does still offer the benefit of allowing the client to post quotes which is displayed to all other clients on Plan 2.

Additional information to note is that “Actual Total Paid to Clients” counter is kept on the company website which displays The Actual Total Paid to Clients currency number which is updated every five minutes and stops counting during the weekend when the market is closed. The number calculates from the launch of Pay for Limits, which was January 31, 2011.

Due to higher cost of business in China, “Get paid for limit orders” is not available for Chinese residents. All Chinese residents have a fee of 2.50 for all order types. Accounts with special commission rates are excluded from Payment for Limit Orders. There is a minimum fee of $0.01 for all Forex and spot trading orders that take liquidity.

MB Trading earned a 4.5 out of 5 star rating in Barron’s 2011 Review of Online Brokers, tying for the top spot overall. The company earned a total of 33.8 points, one tenth of a point under the top score. MB Trading also scored in the top three for separate categories of Range of Offerings, Trade Experience, Trading Technology, Usability, and Customer Service and Education. MB Trading earned a 4.5 out of 5 star rating in Barron's 2010 Review of Online Brokers. The company ranked second overall and tied for first place in the categories of Trade Experience and Portfolio Analysis & Reporting. The company also won the category of Usability. The company also tied for first place in the separate categories of "Best for Frequent Traders" and "Best for Options Traders." This survey evaluated 27 Online Firms and does not include all Online Brokers.

*Real-time Forex Quotes are provided via the MBT Quote API. Quotes are available during platform hours from Sunday at 5 pm EST to Friday at 5 pm EST, except during the scheduled maintenance period from 4:58 pm to 5:06 pm EST. Extended maintenance periods are possible, and messages regarding maintenance are sent via the MBT Desktop, MBT Desktop Pro, and MBT Web 2.0 trading platforms. In addition, MBT begins MetaTrader 4 maintenance at 4:57 pm EST, one minute earlier.

MB Trading provides real-time Demo data in all of our software platforms in the Forex markets at no charge. All Demo data for Stocks, Futures, and Options are on a 10-minute delayed feed. In order to receive real-time data, users must open a live account.

MB Trading provides Google Translation of our website for educational or informational purposes for its international customers. The graphics, applications and some portions of the website are not translated. Customers must bear the sole responsibility of evaluating their regional translation before making any decisions based on such information outside of what the English version of the site represents.