What's the catch with low margin rates of interactive brokers? Their rates seem to be in 1 handle, while others are in 7,8,9 handles.#investments
They can liquidate you if your collateral declines in value too much. Also they might raise rates eventually. Still, it's way better than selling and realizing capital gains.
Is margin interest tax deductible?
It appears so https://kahnlitwin.com/blogs/tax-blog/did-the-tax-write-off-for-margin-interest-survive-the-tcja
OP did you try to take margin loan? How was your experience? I am planning to take margin loan as well, and curious to know the experience.
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Borrow fees on shorted assets(at least 25 bps), commissions on trades (very low), no other catches I know. Margin rates are supposed to be low because it's debt collateralized with highly liquid assets. All the other brokerages simply rent seek