Scottrade is going to charge me 8.75% interest to trade on margin?

Question

Is that a reasonable rate among brokers?

Answer 1

Reasonable.  Fidelity is currently charging 8.825% on balances of less than $10,000.

There is a brokerage firm that does charge less however--Interactive Brokers charges currently about 3.5%, I believe.

Here is a link to their fees.

http://individuals.interactivebrokers.co...

Answer 2

It is usually about base+2% so this seemss a little high. But this is how they make there money. You could trade on T+10 or T+15 settlement.

Also if you make money on the trades it doesn't matter!