Interactive Brokers Cuts Margin Trading Costs in Japan

GREENWICH, Conn., Sept 16 – Interactive Brokers (Nasdaq: IBKR) announced three new programs at Interactive Brokers Securities Japan Inc. (IBSJ) to help investors reduce trading costs and generate income on eligible cash and shares.

The main initiative introduces a more efficient margin financing model. Investors who post cash are charged interest only on the borrowed portion, not the entire position, a practice common globally, now available in Japan.

Two additional programs extend this principle. Gaika+ converts eligible non‑yen cash into yen returns, and the Stock Yield Enhancement Program lets clients earn income by lending fully paid shares, with rates clearly shown. Together, they bring Interactive Brokers’ cost‑efficient, transparent approach to Japanese investors.

For instance, a ¥10 million position funded with ¥5 million in cash, held for a year at a 2.466% rate, would cost ¥246,600 if interest applied to the full amount. Charging only on the ¥5 million financed reduces the cost to ¥123,300, saving ¥123,300 or 50%.¹

“Our aim is to help Japanese clients maximize every yen invested,” said Ramir Roque Cimafranca, Head of Interactive Brokers Securities Japan Inc. “These three programs ensure that margin, cash, and shares all contribute to returns.”

IBSJ, a subsidiary of Interactive Brokers Group, offers trading in stocks, options, futures, and CFDs across global markets from a low‑cost platform.

Interactive Brokers Securities Japan Inc. is part of Interactive Brokers Group, a Nasdaq‑listed S&P 500 member serving over 5.4 million accounts with more than $960 billion in client equity worldwide. IBSJ clients benefit from the group’s global technology and products.

The three programs:
(1) Margin Trading: Interest is charged only on the borrowed amount.
Clients can trade stocks on margin, including shorting Japanese and US stocks, at a reduced cost since interest applies only to the financed portion.

(2) Gaika+: Put uninvested cash to work.
Clients earn daily income in yen on eligible non‑JPY balances through automatic overnight currency swaps, with no added FX or market risk and no effect on cash available for trading. It applies only when the non‑JPY currency interest rate is higher than the yen interest rate. Eligible balances can come from deposits or trading.

(3) Stock Yield Enhancement Program: Earn income on fully paid shares.
Clients can lend their fully paid shares to IBSJ, which in turn lends them to short sellers. Unlike many domestic programs that cap payouts, IBSJ pays clients 50% of the market‑based borrow rate and discloses both the market rate and the client’s share. For example, if the market borrow rate is 4%, the client receives half of that rate, or 2% annually. On ¥1,000,000 of lent shares, that 2% payout would equal approximately ¥20,000 in annual income.

The best-informed investors choose Interactive Brokers.