Short Sale Cost

Short Sale Cost

Calculating the Cost of Borrowing Stock at Interactive Brokers

There are two factors for the daily cost/revenues associated with short selling of stocks and bonds ("eligible SB securities") at IBCE:

  • Borrow Fee – for each eligible SB security there is an indicative rate available on the TWS and the Client Portal
  • Short Sale Proceeds income paid to you by IBKR - for each eligible SB security denominated in a supported currency, client accounts may receive market rate income.



Income Earned on Short Sale Proceeds Cash Balances

For the purposes of crediting income on cash equal to short stock collateral values, only accounts with Net Asset Value (NAV) exceeding USD equivalent 100,000 will be eligible to receive income on these cash balances.



Short Sale Proceeds Rate Calculator
Enter Cash Balance


BM = Benchmark Rate
Currency Tier Rate Paid
USD 0 ≤ 100,000 0%
> 100,000 ≤ 1,000,000 3.830% (BM - 1.5%)
> 1,000,000 ≤ 3,000,000 4.580% (BM - 0.75%)
> 3,000,000 4.830% (BM - 0.5%)
AUD 0 ≤ 150,000 0%
> 150,000 1.820% (BM - 2.5%)
CAD 0 ≤ 130,000 0%
> 130,000 ≤ 1,300,000 3.000% (BM - 2%)
> 1,300,000 ≤ 3,000,000 3.640% (BM - 1.36%)
> 3,000,000 3.850% (BM - 1.15%)
CHF 0 ≤ 90,000 0%
> 90,000 0.000% (BM - 2.5%)
EUR 0 ≤ 90,000 0%
> 90,000 1.407% (BM - 2.5%)
GBP 0 ≤ 80,000 0%
> 80,000 2.698% (BM - 2.5%)
HKD 0 ≤ 780,000 0%
> 780,000 1.395% (BM - 2.5%)
MXN 0 ≤ 2,000,000 0%
> 2,000,000 7.000% (BM - 4.25%)
SEK 0 ≤ 900,000 0%
> 900,000 1.492% (BM - 2.5%)
Disclosures
  • Costs for position borrowing of stocks with special considerations (for example hard to borrow instruments) are usually higher than for normal availability stocks. These additional costs will be passed on in the form of lower short stock credit income. Please note that this may lead to a net debit short stock credit income if the costs to borrow exceed the income earned. In order to view the indicative short stock income rates for a specific stock, IBKR recommends that clients use the Short Stock (SLB) Availability tool from the Support menu in Client Portal.
  • This page does not consider all fees that might be applicable to your transaction and you should not rely on it to assess the total charges you may pay. Borrow fee rates and short sale proceeds are calculated based on settled stock positions. Costs for borrowing certain stocks may be elevated due to supply and demand dynamics in the Securities Lending market. Please note, these dynamics may lead to negative rebate rates if the borrow fee rate exceeds the income earned on short sale proceeds. Stock borrow fee rates may also vary by program or arrangement. Clients introduced through another broker may pay a different stock borrow fee at the election of the client’s introducing broker. Clients should contact their introducing broker about the rates that will apply to their account. The rates displayed on this page are for illustrative purposes only and are subject to change.