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I finally read the fine print on my brokerage's margin rates, and I've been getting hosed for 2 years
I was messing around in my account settings on Fidelity last week and clicked into the margin rate sheet just out of boredom. Turns out I was paying 8.25% on a small margin balance I've been carrying since 2022, thinking it was closer to 4%. I called and the rep basically said the rate is negotiable if you ask, and just like that they knocked it down to 6%. Has anyone had luck getting a broker to drop their margin rate lower, or is it just a take-what-you-can-get situation? I'm wondering if I should just move the whole account to a cheaper shop.
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jenniferh8322d ago
My uncle got a car loan from his credit union in 2019 at 3.9% and never looked at it again. When he finally checked last year, the rate had jumped to 7.2% because it was a variable rate tied to some index he didn't know about. He called, they said the same thing, that rates go up when the prime rate goes up. So it wasn't just margin accounts doing this. Seems like anything with a floating rate will creep up on you if you stop paying attention. I check mine every few months now, mostly out of fear.
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