What did I do wrong on IB? Interest charged to me


#1

So I have a new position negative -8 usd for “MTD interest” and I think this is some interest because of borrowing, but I have no idea why. What could have caused this?
I have a certain number of VT share and a USD.CHF because I bought USD with my CHF.
Does anybody saw anything similar? What did I do wrong?


#2

So MTD means month-to-date (period from the 1st day of the month until today).

Did you buy enough USD with your CHF to cover for the purchase of all VT?

I guess that’s why I didn’t go for the margin account. No surprises then.

I can tell you how it looks on my end:

  • I have a negative CHF.USD position of, say, -10’000 CHF worth -11’000 USD
  • I have a positive VT position worth 10’000 USD
  • And I have 1’000 USD in cash

I guess a negative CHF.USD is the same as a positive USD.CHF, so no difference here.


#3

Thanks Bojack
I can’t find any documents explaining where this -8 is coming from.
I have like you say xxxxxx positive USD.CHF
positive VTI position worth more or less the same
117 usd in cash

I always checked to have enough money to cover this.
Tomorrow I will call them I was hoping somebody had some slang or keyword to give me :smiley:


#4

What’s your base currency? This is the balance they charge certain fees to so that could be the explanation if yours is chf. But if you haven’t already why not just ask IB through the chat section of help. Their portal is confusing but their customer service is usually pretty good and looking into queries like this.


#5

Hi,
negative interest is charged from 100000 chf kept as cash, which was not the case.
It turns out I bought the share on margin without even noticing it.
So what I did was to switch back to the cash only account, and get more comfortable with IB and switch back to margin when it will be more attractive, for istantanee if they release the mastercard debit card in europe too