Spencer Li

Interactive Brokers: One of the Lowest Margin Fees

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Before reading this guide, the first thing you will need to do is to open an Interactive Brokers (IBKR) account, before you can start trading.

 
margin loan rates table

Investing in the stock market can be an excellent way to grow your wealth over time, but it can also be costly if you’re not careful. One of the biggest expenses when investing is trading costs, such as commissions and fees. Fortunately, there are ways to minimize these costs, and choosing the right online broker is an important part of the equation.

When comparing online brokers, you’ll want to look at a variety of factors, such as account minimums, investment options, and customer service. But one of the most important considerations should be trading costs.

Some online brokers charge flat fees for trades, while others charge a percentage of the trade’s value. Depending on the size and frequency of your trades, one option may be more cost-effective than the other.

Another cost to consider is margin fees. Margin trading can be a powerful tool for experienced investors, but it can also come with high fees. Interactive Brokers is one online broker that stands out in this regard.

According to a recent report from StockBrokers.com, Interactive Brokers has the lowest margin fees of any online broker. Margin fees can add up quickly, especially if you’re making frequent trades, so this can be a significant advantage for traders looking to keep their costs low.

But low margin fees aren’t the only thing to consider when choosing an online broker. You’ll also want to look at other factors like account minimums, investment options, and customer service.

For example, some online brokers require a minimum balance to open an account, while others have no minimums. If you’re just starting out as an investor, a low or no minimum balance requirement can be a big advantage.

Investment options are another important consideration. Some online brokers offer a wide range of investment options, including stocks, bonds, mutual funds, and more. Others may specialize in a particular type of investment, such as cryptocurrency.

Finally, customer service can make a big difference when it comes to choosing an online broker. You’ll want to look for a broker that offers responsive customer support, preferably 24/7. You should be able to get help when you need it, whether you have a question about your account or need technical assistance.

In conclusion, if you’re looking to invest in the stock market, it’s important to choose the right online broker to minimize your trading costs.

Interactive Brokers is one option to consider, as it offers some of the lowest margin fees in the industry.

If you found this guide useful, you might also want to check out our full list of guides for Interactive Brokers!

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Spencer Li

Interactive Brokers: Earn Up to 4.33% on Your Uninvested Cash Holdings

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Before reading this guide, the first thing you will need to do is to open an Interactive Brokers (IBKR) account, before you can start trading.

 
IBKR is offering clients the opportunity to earn interest on long-settled cash balances, with accounts of over USD 100,000 receiving full interest rates, and smaller accounts receiving rates proportional to their size.

Clients with both large long and short cash positions can subscribe to an auto-swap program that authorizes IBKR to execute forex transactions, improving overall interest rate benefits/costs.

This program is only available to qualifying investors with cash balances of at least USD 10 million or equivalent, or those who qualify as an Eligible Contract Participant (ECP) in the US. Interest accrues daily and IBKR posts interest payments on a monthly basis on the third business day of the following month.

Please note that balances held in JPY or RUB may receive a negative rate, while other currencies may receive 0% interest.

 

Global interest rate

If you found this guide useful, you might also want to check out our full list of guides for Interactive Brokers!

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Spencer Li

Weekly Market Wrap: FOMC & NFP This Week!

image first republic and recession 1

For our “Daily Trading Signals”, we have now also included a “Weekly Market Report”, where we provide a weekly deep-dive on the market, including fundamentals, technicals, economics, and portfolio management:

Click here for last week’s market report (24 April 2023)
Click here to subscribe for the latest market report (31 April 2023)
Click here to see the archives of all our past market reports

We cover 3 main markets with a total of 200+ counters, so we will never run out of trading opportunities:

By covering a broad range of markets, we can focus our attention (and capital) on whichever market currently gives the best returns.

Subscribe for real-time alerts and weekly reports:
👉🏻 https://synapsetrading.com/daily-trading-signals

image first republic and recession 1

Market Recap & Upcoming Week

Last week, the potential of generative AI technology to boost revenues for tech giants like Amazon, Microsoft, and Alphabet created a buzz in the market. Despite the growth slowdown in their cloud-computing services, shares of these companies have outperformed the S&P 500 and Nasdaq Composite. Microsoft’s plans to adopt OpenAI’s ChatGPT technology, Alphabet’s share increase, and Amazon’s AI plans announcement contributed to their stock performance.

On the other hand, Moody’s Investors Service downgraded 11 regional banks, highlighting the increased instability in the banking sector due to higher interest rates and recent bank failures. This exposed weaknesses among regional banks and raised concerns over the commercial real estate market.

In the stock market, S&P 500’s trading at 18 times its 12-month forward P/E estimates has led institutions to reduce exposure to economically-sensitive sectors in anticipation of a potential U.S. recession. Insider buying in the financial sector signals optimism, but analysts urge caution as other factors can influence stock performance. As the first quarter US earnings season unfolds with mixed results, hedge funds have increased their net short position in S&P 500 index futures, showing skepticism about Wall Street’s recovery. However, some analysts argue that equities still offer better returns than bonds and have the potential for earnings growth.

This week, as earnings season marches on, investors will keep a close eye on reports from major companies such as Pfizer, Starbucks, Uber Technologies, AMD, Qualcomm, Apple, Royal Dutch Shell, BP, and ConocoPhillips. Additionally, Berkshire Hathaway’s annual shareholders’ meeting in Omaha, Nebraska, will draw attention to Warren Buffett’s insights and investment strategies.

In terms of economic indicators, updates on the labor market will come in the form of the Job Openings and Labor Turnover Survey (JOLTS), ADP’s National Employment Report, and the April nonfarm payrolls report.

In addition, central to financial discussions this week will be the Federal Reserve’s two-day Federal Open Market Committee (FOMC) meeting, commencing on Tuesday. Market participants will be eager to learn the outcome of Wednesday’s interest rate decision, which is anticipated to be the final rate hike in the current tightening cycle. As these events unfold, investors will be looking for hints on how companies and the economy will navigate the ongoing challenges posed by inflation, interest rates, and potential slowdowns in growth.

 

Daily Trading Signals (Highlights)

AUDCHF 280423

AUDCHF – Following up, it has hit the first TP with 170+ pips profit! 💰🔥💪🏻

Since price action is still bearish, can consider closing half and letting the other half trail.

 

EURAUD 280423

EURAUD – Our TP for this has hit with 630+ pips total profit. Congrats to those who took this trade! 💰🔥💪🏻

Price momentum is still strong, so if you want to leave a small position to run you can do so as well.

 

Trading Signals GBPCAD 250423

GBPCAD – Prices resuming upward move, let’s see how far it can go!

 

Trading Signals GPBUSD 280423

GPBUSD – Following up, prices are starting to head up after consolidating for the past month or so.

 

Trading Signals US30 260423

Dow Jones Index (US30) – Good low risk high reward shorting opportunity near the top of the price channel.

 

Trading Signals WTICOUSD 280423

Crude Oil (WTICOUSD) – Since it failed to hold new highs, prices might come back to test the bottom of the range.

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Spencer Li

Weekly Market Wrap: Mixed Results for Banks Earnings, Tech Next

pexels expect best 351264

For our “Daily Trading Signals”, we have now also included a “Weekly Market Report”, where we provide a weekly deep-dive on the market, including fundamentals, technicals, economics, and portfolio management:

Click here for last week’s market report (17 April 2023)
Click here to subscribe for the latest market report (24 April 2023)
Click here to see the archives of all our past market reports

We cover 3 main markets with a total of 200+ counters, so we will never run out of trading opportunities:

By covering a broad range of markets, we can focus our attention (and capital) on whichever market currently gives the best returns.

Subscribe for real-time alerts and weekly reports:
👉🏻 https://synapsetrading.com/daily-trading-signals

 

pexels expect best 351264

Market Recap & Upcoming Week

Last week, concerns grew about the historical trend of stocks rallying after the Federal Reserve finishes raising interest rates, as earnings growth falters and stocks look expensive relative to history. Elevated inflation may continue to weigh on earnings in the coming quarters.

Microsoft’s Bing is challenging Google in the lucrative search market, raising the cost of retaining this business. This comes as global online advertising is in a slump, and traffic acquisition costs (TAC) reached nearly $49 billion last year.

Tesla’s operating margin declined due to aggressive price cuts and inflation in materials.

The Walt Disney Company is expected to lay off thousands of employees starting next week as part of its cost-cutting initiatives. Economists are predicting a recession later this year as the Federal Reserve raises interest rates, which businesses and consumers haven’t experienced in 15 years.

In other news, Goldman Sachs reported an 18% decrease in first-quarter profit, while Morgan Stanley saw a 19% drop in Q1 profit due to a slowdown in deal-making.

Meanwhile, China surprised economists with strong 4.5% growth in the first quarter despite its housing market crash and a conservative monetary stance.

This week, investors should closely monitor the earnings reports from major tech companies, including Apple, Amazon, Google parent Alphabet, Microsoft, and Meta Platforms, as well as other noteworthy companies like Coca-Cola Company, McDonald’s, Visa, Mastercard, and ExxonMobil, among others.

These reports will provide valuable insights into the performance and future prospects of these industry giants.

Additionally, keep an eye on the Case-Shiller National Home Price Index for February, new and pending home sales for March, and the BEA’s advance estimate for the first-quarter GDP to get a clearer picture of the current state of the economy.

Furthermore, don’t miss the key update on inflation with the Personal Consumption Expenditures (PCE) Price Index—the Federal Reserve’s preferred inflation gauge—for March. This indicator will help assess the extent of inflationary pressures in the economy and potentially influence the Fed’s monetary policy decisions.

Daily Trading Signals (Highlights)

Trading Signals CADCHF 210423

CADCHF – Congrats on hitting the first TP! 💰🔥💪🏻

High chance of another leg down, so can close half and use a trailing SL.

 

Trading Signals NZDCHF 210423

NZDCHF – Prices have fallen to support, and hit the profit target for 287 pips profit! Congrats to those who took this trade! 💰🔥💪🏻

 

Trading Signals CADJPY 210423

CADJPY – A potential range trading opportunity.

 

Trading Signals AUDCHF 210423

NASDAQ 100 (US100) – Stocks have been very flat the past 3 weeks, with the trading range here of only roughly 3% from top to bottom.

In addition, the last 5 bar bodies are super tiny and with long shadows, suggesting much indecision.

Will need to wait for a breakout of the range before any trades can be taken.

 

Trading Signals US100 200423

NASDAQ 100 (US100) – Stocks have been very flat the past 3 weeks, with the trading range here of only roughly 3% from top to bottom.

In addition, the last 5 bar bodies are super tiny and with long shadows, suggesting much indecision.

Will need to wait for a breakout of the range before any trades can be taken.

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Spencer Li

Weekly Market Wrap: Ethereum (ETH) Breaks Above $2000!

Neuschwanstein Castle German

For our “Daily Trading Signals”, we have now also included a “Weekly Market Report”, where we provide a weekly deep-dive on the market, including fundamentals, technicals, economics, and portfolio management:

Click here for our most recent market report (10 April 2023)
Click here to see the archives of all our past market reports

We cover 3 main markets with a total of 200+ counters, so we will never run out of trading opportunities:

By covering a broad range of markets, we can focus our attention (and capital) on whichever market currently gives the best returns.

Subscribe for real-time alerts and weekly reports:
👉🏻 https://synapsetrading.com/daily-trading-signals

 

Neuschwanstein Castle German

[Photo: Neuschwanstein Castle, Schwangau, Germany – See my full travel photo log from trading & travelling!]

Market Recap & Upcoming Week

Last week, the S&P 500 and Dow Jones Industrial Average experienced fluctuations as inflation in March dropped to its lowest level in almost two years, increasing optimism among investors. The March CPI report showed falling energy prices, rising services prices, and a slowdown in food inflation. Investors should keep an eye on durable goods prices as their increase could signal more challenges for inflation.

Gold prices surged to their highest level of the year, reflecting a 13% increase year to date. Despite slowing inflation data, investors anticipate the Federal Reserve scaling back its rate-hiking campaign due to concerns about economic weakness. Used vehicle prices, which spiked in 2020-2021, started to drop in early 2022, but the not-seasonally-adjusted CPI for used vehicles increased by 1.0% in March, suggesting the drop in used vehicle CPI may be over.

Ethereum (ETH) broke to news highs, and the Shapella Upgrade successfully boosted the price of ETH, even though it enabled withdrawals from the Beacon Chain. Staking inflows have risen for four consecutive days, reflecting bullish sentiment towards Ethereum after its shift to a Proof-of-Stake protocol.

Singapore’s economy grew by a mere 0.1% year-on-year in Q1 2023 due to a decline in manufacturing, and the country risks entering a technical recession if growth continues to slow in Q2 2023. JPMorgan, Citi, Wells Fargo, and PNC Financial reported their results, with mixed outcomes for their stocks.

The International Energy Agency (IEA) warned of a larger deficit in the oil market due to surprise production cuts from OPEC’s leading members, which could send crude prices higher and worsen inflation.

In the upcoming week, earnings season will be in full swing, with reports from major companies such as Johnson & Johnson, Bank of America, Netflix, Lockheed Martin, Tesla, Morgan Stanley, IBM, American Express, and Procter & Gamble. Updates on the housing market, inflation readings from the U.K., eurozone, and Japan, and Q1 GDP figures from China will also become available.

Daily Trading Signals 

Here are some of the real-time signals and price alerts that were triggered during the week. There were a lot of profitable forex trades, but the biggest profits came from our trade on Ethereum, which has been up by more than 20%!

 

Trading Signals ETHUSD 140423

Ethereum (ETHUSD) – Short-term momentum is still very strong, as prices blew past $2,000.

Congrats to all those who took this trade! 💰🔥💪🏻

Can consider taking half profits and continue riding the uptrend.

 

TP hit ETHUSD

Actually will probably go to $2k soon, so can wait a while more.

 

Trading Signals BTCUSD 140423

Bitcoin (BTCUSD) – Prices broke out from the symmetrical triangle, and above $30,000, which is an important psychological price level.

Looks like it will continue going higher.

 

Trading Signals USDCHF 140423

USDCHF – Congrats to those who took this trade, I did not expect the TP to be hit that fast! 💰🔥💪🏻

There is strong support around 0.88, so you might want to consider taking half profits and trailing the rest.

 

Trading Signals USDSGD 140423

USDSGD – Now that prices have broke down from the bear flag, I won’t be surprised if the prior low gets tested.

 

Trading Signals US30 120423
Dow Jones Index (US30) – Long shadows near the trendlines have so far led to price rejections and price moving to the opposite side of the price channel.

 

Trading Signals CHFJPY 140423

CHFJPY – Prices breaking out from a period of consolidation.

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