Updated 08/01/2008
All interest and money market rates change periodically and are subject to change at any time without prior notice.
Unused “free” cash is swept into a separate money market account at the end of each day to earn interest. When you need the funds, the money market is automatically redeemed so the funds are available for investments or withdrawals. If you do not select a specific fund when opening your account, the CAT MM Portfolio (usually the highest paying) is selected automatically. To change money market funds please email support@mastertrader.com.
Margin Interest: 7.45% APR
"Margin" is borrowing money from your broker to buy a security and using your investment as collateral. Investors generally use margin to increase their purchasing power so that they can own more securities without fully paying for them. Accounts are not charged for the use of margin when borrowing money for trading during the day. The margin interest rate is only charged when you borrow money to hold positions overnight.
If the market value of securities in your account exceeds your account equity, you are using margin. To learn more about margin please read the information that the US Securities and Exchange Commission (SEC) provides on their web site: http://www.sec.gov/investor/pubs/margin.htm
Credit Interest: 0.10% APR
All accounts are paid interest each month on any unused or “free” cash held in the account. |
