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> Not to mention good margin rates Yeah, that's understating it. Here's the interest rate on a $100,000 margin loan: Interactive Brokers 1.09% Schwab
by PhantomGremlin 13y ago
> Not to mention good margin rates
Yeah, that's understating it. Here's the interest rate on a $100,000 margin loan:
Interactive Brokers 1.09%
Schwab 6.875%
TD Ameritrade 7.25%
Fidelity 6.575%
Scottrade 6.50%
Etrade 6.14%
Having said that, I still haven't created an account there, because I agree strongly with what you said:
not that one should ever go on margin
if you don't know what you are doing
For example, look at how the ex-CEO of Chesapeake Energy, Aubrey McClendon, got blown up by margin (from Wiki):
It was announced on October 10, 2008,
that McClendon sold approximately 33.4
million shares, approximately 90% of his
stock in Chesapeake Energy (stock symbol CHK),
for $16.52 per share to meet a margin call
after the drop in the U.S. stock market
that week. The stock had been worth as much
as $74.00 per share in the year prior to the
sale, a loss of nearly $1.92 billion.
I think that last bit qualifies as #RichPeopleProblems