IB Brokers Margin Account

Discussion in 'Loans & Mortgage Brokers' started by smallbuyer, 7th Mar, 2020.

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  1. smallbuyer

    smallbuyer Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    280
    Location:
    WA
    Hello,
    Has anyone singed up for a IB Brokers Margin account (just became available recently in Australia).
    Got a normal IB account but the option is now there for a margin account and the rates look very cheap.
    Anyone used this got any tips/opinions?
    It mentions equifax may contact you to confirm some details for this account? Any idea what they are after? Will this go on record as a credit hit?

    Cheers
     
  2. bunkai

    bunkai Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    783
    Location:
    Sydney
    --
    . For clients of Interactive Brokers Australia who are classified as retail, margin loans will be capped at AUD$25,000
    --
    Rates appear to be 0.0218 plus 0.01 for retail clients.
    --
    Doesn't seem to be worth bothering with?
     
  3. smallbuyer

    smallbuyer Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    280
    Location:
    WA
    They send u a link apparently from Equifax which asks u to put in you online banking logon details!! Seems odd to me. Is this common i havent applied 4 finance for a bit.
     
  4. housechopper2

    housechopper2 Well-Known Member

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    5th Oct, 2016
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    Location:
    Melbourne
    Let me know if you learn more - I want one !
     
  5. David_Sydney

    David_Sydney New Member

    Joined:
    9th Mar, 2019
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    Location:
    Sydney
    I've asked IB about alternative ways to process the approval as i wasn't keen on providing my banking username and password.

    Response was not helpful and just referred me back to the process with Equifax.
     
  6. smallbuyer

    smallbuyer Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    280
    Location:
    WA
    I had the same issue any questions where just refereed back to equifax. Idiotic thing is they say to qualify u need to prove 100k liquid assets, i had 100k with IB at the time so all they had to do was look at their own system. I ended up putting in the bank details them immediately changing the PW and having a good look at the account to make sure nothing dodgy happened. Account was approved a week or so later.
     
  7. ChrisP73

    ChrisP73 Well-Known Member

    Joined:
    5th Oct, 2018
    Posts:
    681
    Location:
    Brisbane
    Does anyone have experience with Interactive Brokers margin lending as a wholesale investor (certified under per Section 761G(7)(c) of the Corporations Act 2001)? Their margin rates are really good (low 2%s) for AUD500K+

    I'm aware that assets are not individually registered (ie no unique HIN for each account), but held as a single account under a custodial structure.

    The account manager at another lender also indicated that pooled holdings are utilised as collateralised security for debt funding. This review seems to indicate this would be the case for non-natural person / non-retail clients, so I'm curious if this would apply for a client that was an individual, wholesale investor.

    "For the non-natural person clients that are not categorized as retail clients, IBKR Australia is permitted to utilize for financing purposes a portion of the loan value of the stock these customers hold with IBKR Australia. Put otherwise, IBKR Australia borrows money from a third party (such as a bank or broker-dealer), using the customer’s margin stock as collateral, and it lends those funds to the customer to finance the customer’s margin purchases."

    Still researching before I request further information from IB but would be interested to know if others have been down this path already.