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by owenversteeg
2056 days ago
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On the contrary, it is enormously profitable. If a brokerage charges you 3%, their profit is 3% - cost to borrow money for them - any losses. Losses are rare, they occur once in a blue moon when a major market crash happens. The cost to lend money is currently extremely low (fed funds rate is nearly 0), so yes, they're absolutely printing money with their margin loans. To the tune of several hundred million dollars a year for IBKR, actually! |
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