OPTIONS 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.

Cash Management

MB Trading offers two (2) options for your un-invested cash: SIPC Brokerage Account and FDIC Sweep Program.

Option 1: Un-invested cash in the SIPC Brokerage Account (1) earns simple interest; and (2) is protected under SIPC coverage, which is based on the account; and (3) is readily available for new trading ideas or to meet margin deficiency issues. For more information about SIPC coverage, please go to SIPC.org or by contacting SIPC at 202-371-8300.

Option 2: Un-invested cash in the FDIC Sweep Program (1) earns simple interest; (2) is protected under FDIC insurance, which is based on the account; and (3) may not be readily available to meet margin deficiency issues. For more information about (1) FDIC coverage, please go to FDIC.org; and (2) the Sweep Program, please review the FDIC Terms and Conditions.

Prior to making a selection, it is important that you evaluate your overall needs for your un-invested cash including (1) liquidity, (2) access, and (3) protection. It is also important to understand that un-invested cash in the SIPC Brokerage Account is not insured by FDIC, and un-invested cash in the FDIC Sweep Program is not covered under SIPC.

Futures and forex based products are ineligible for SIPC and FDIC protection.

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.


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. IB 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.

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.

Demo accounts receive FREE streaming Stocks, Futures, and Options quotes which are delayed up to 20 minutes (per individual exchange requirement). FREE real-time streaming quotes for Stocks, Futures, and Options is available to nonprofessional users with funded, live accounts.

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