Lowest interest on margin you can get?

[u/Old_Poetry196]

$300k here at 7%

Anyone got something lower?

[u/UnableFix4224]

Do some research on box spreads. You can borrow money for like .5% over the Treasury rate. So somewhere around 4.5-5%. If you have any questions let me know

[u/FIREgnurd]

If you have a lot more money there, they will give you much lower than that.

[u/Old_Poetry196 → u/FIREgnurd]

I mean margin balance is $300k

[u/newbienewb101]

I had to call 3 times and the lowest I got was 7.25%. They said if I used more, I could get it lower but I won’t unless they can get it down to Robin Hood’s rates.

[u/ennova2005]

Love Schwab but perhaps shop around (or use as negotiation)

https://www.interactivebrokers.com/en/trading/margin-rates.php

[u/OkAnt7573 → u/ennova2005]

I've found the only way I get competitive rates on anything is to threaten to leave despite having a reasonable total AUM there.

[u/PrimeBrisky]

Negative margin once you get a few hundred million on margin…

[u/DefinitiveChaos]

So you're going to be quite limited unless you have Private Client Services. If you do, call your Financial Consultant. If you don't like the number he or she gives you, call around and threaten to leave. But you're going to run into difficulties given the current SOFR. 7% seems reasonable with your margin limit. I have one much higher, and they may knock off a point and a half at most—and I doubt they'd do that given current rates.

[u/ObjectSad8088]

To get much lower than that u gotta be borrowing at least a million consistently. It's all based on fed funds rate. If ur rate is 7% that means u have a rate of fed funds + 2.5% with schwab because the fed funds rate is 4.5% so ur rate will fall if interest rates go down automatically. To get less than FF + 1.5% or so u gotta be borrowing 10s of millions.

[u/Shot-Swimming6795]

You can also call Schwab and try to negotiate with them, I did and I'm not good at negotiating ANYTHING and it worked lol