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How are the rates calculated for borrowing money on my Margin Account in order to purchase stocks?

April 26, 2017account Borrowing calculated margin money purchase rates stocks

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How are the rates calculated for borrowing money on my Margin Account in order to purchase stocks?

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The annual rate of interest which is charged on net debit balances (the amount that you have borrowed) is calculated by a formula based on a base rate we establish. Interest is computed by multiplying the daily net debit balance by the effective rate of interest divided by 360. The average rate of interest is subject to change without prior notice.