sorry for my poor understanding of their webpage
BTW if I have 50k CHF and 50k Euros on my Cash trading account(NOT margin account), it seems that I will not be charged any negative interest even the total amount is above 50k?
Here is the link for the info
You can have up to 50k CHF “cash” and 50k EUR “cash” in your IBKR without paying negative interest. Your total account size can be much bigger (e.g. having invested 100k in stocks, or having 100k in USD)
What the heck? They charge their clients negative interests? Sucks!
To be fair the reverse would be surprising, and probably worrying about their business model.
Not really, many brokers don’t charge a penny for holding cash.
Nobody is saying that he/she hold cash long-term.
But if your entire portfolio and cash position is simply a lot bigger than 50k, this becomes quite relevant. For small accounts, it’s of course not an issue. You always have to have some cash on hand.
Well in that case you would anyway want to keep the cash in tranches where they are protected, e.g. in N bank accounts up to max 100k CHF. (And even then you might in some places be hit with negative interest.)
Why at IBKR?
I wonder what the business model of those broker is, they probably have a lot more fees to offset the cost then (or they like losing money, but I wouldn’t trust someone with no sound business model with my money).
I’d rather have a transparent broker like IB, I know what I’m getting, they just pass the fees through from upstream, both positive and negative (interest rate, stock exchange fees, etc.) .
There is nothing shady or suspicious about 0 fees. European people are not used to this new concept. TD Ameritrade or Robinhood don’t have trading commissions, so are many other providers.
Please don’t put Robinhood in comparison with serious brokers like IBKR.
Google for “selling order flow” and find out why they are “commission free”.
If it’s free, you are the product. Economics 101
So what? The money has to come from somewhere. And IBKR, your serious broker does exactly this “selling order flow” to provide 0 commissions. Google it.
Huh? What’s wrong with their 0 commisson? TD Ameritrade is not serious? IB also provides 0 trading fee scheme for US stocks and so on. So they are not serious either according to your logic? I smell some conservative and old-thinking Europeans here. Just embrace the new world and new innovation.
Yes, but that somewhere is actually indirectly you with payement for order flow ! It is not like you are watching an add and the money comes from someone else
Yea, if I choose between selling order flow or commission, I’d still choose 0 commission with selling order flow manipulation. It’s also advantageous for day traders. There is nothing shady about it. It’s just a different way of doing business. I wouldn’t pay 40 bucks to buy or sell stocks at Swissquote for example even at a cost of less better execution.
Those 0 fee brokers also make money by not giving you the positive interest rates on e.g. USD (as least was a big source of revenue for many of them). I somehow doubt they’re happily losing money on high CHF or EUR balances which carry negative interests.
Edit: and still wondering, are there really any broker offering non negative interest rate on large CHF balance?
I’m smelling a troll here. Just saying. Have fun!
If I put money in their account, I want to trade and not because I want to park my money there to get interest. If I want to get interest rate payment, I will simply put my money in a bank account.
sidenote: TD Ameritrade does give you some interest like 0.01%.
Ok, then I don’t even know what/why we’re discussing this, if you don’t plan on having large cash balance. The negative interest only applies to large balance (and I still would like to know the name of a broker who does not apply any).
I’m calm af, goddammit!
Just joking 
Maybe this topics could be moved to the COFFEE section now, because originally it was about 50k CHF in IBKR amount.