# Margin Rates

For U.S. Stocks,Options, & ETFs

Margin interest rates vary and depends upon the size of the debit balance and the base margin rate (AKA broker call).
When setting base rates, GlobalVest considers indicators like commercially recognized interest rates, industry conditions related to credit, the availability of liquidity in the marketplace, and general market conditions.

Margin Debit Rates

As of August 1, 2012, the current base rate is 5.00%

 Debit Balance Margin Rate Above/Below Broker Call Above \$ 999,999 3.50% Base Rate -1.50% \$250,000 - \$999,999 4.25% Base Rate -0.75% \$100,000 - \$249,999 4.50% Base Rate -0.50% \$50,000 - \$99,999 4.75% Base Rate -0.25% \$25,000 - \$49,999 5.75% Base Rate +0.75% \$10,000 - \$24,999 6.00% Base Rate +1.00% Under \$10,000 6.25% Base Rate +1.25%

Calculation of Margin (Debit) Interest

The formula to determine how margin interest is incurred is as follows:

Margin Interest = (Margin Debit * Margin Rate/360 days) * (Number of days the margin debit is carried)

For example:
\$10,000 margin debit is charged a 6% margin rate for a period of 20 calendar days. Inserting the numbers in the formula above, the margin interest is calculated as follows:

(10,000 *6%/360) * 20 = \$33.33 of margin interest charged to the account.

Credit Interest Rates*

As of August 1, 2012, the current base rate is 5.00%

 Available Credit Balance Interest \$1 - \$100,000 Fed Funds \$100,001 - \$250,000 Fed Funds \$250,001 - \$500,000 Fed Funds \$500,001 + Fed Funds

Calculation of Credit Interest

To calculate the amount of credit interest earned in your account the following will need to be considered:

1. The amount of money in the account that is not invested in stocks/options.
2. The number of days the money in the account was not invested in stocks/options.
3. The credit interest rate

The credit interest is calculated as follows:

Credit Interest = (Number of days * amount of money * interest rate) / 365

For example:
\$15,000 earning 1.78% interest for 18 days. Inserting the numbers in the formula above, the credit interest is calculated as follows:

(18 * 15,000 * 1.78%) / 365 = \$13.16 of credit interest credited to the account.

* Rates are updated weekly and are subject to change at any time without notice. Fed Funds rate can be found in the Wall Street Journal under Money Rates (Fed Funds). Note that credit interest is not paid on balances at or below \$250. 