Background
For several years, many central banks around the world have instituted zero to negative interest rates in order to promote their economic growth priorities. When these policies were first implemented, Interactive Brokers1 believed them to be transitional and established its own rate policy for clients to insulate them to some degree from these central bank strategies.
Unfortunately, the zero-negative rate policies appear to remain the prevailing strategy for the foreseeable future. Therefore, Interactive Brokers is adjusting its current negative rate currency policy, which charges a zero percent interest rate on deposited funds from 100K USD/EUR/CHF or equivalent in other currencies.
Updated Policy
Effective September 1, 2021, the thresholds of balances exempt from negative interest will be reduced to the amounts below.
| Currency | New Thresholds for Credit Balances |
|---|---|
| EUR | 50,000 |
| CHF | 50,000 |
| CZK | 1,000,000 |
| DKK | 300,000 |
| SEK | 400,000 |
| JPY | 5,000,000 |
Deposited funds (“credit balances”) in excess of these amounts will be exposed to the prevailing negative rate regimes. We recommended that you review your portfolio’s cash holding and making changes if it is determined necessary.
For a full listing of credit/deposit rates at Euro Pacific Trader, please click here.
1Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.
Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.
Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations. Interactive Brokers LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.
For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.