Ethan22:Sorry for the confusion, I clicked "reply" to a certain question, but I see now that it puts my post at the end.
Tom said he sold some stocks that were bought partially on margin, but wasn't sure if Zecco automatically withheld that interest from the proceeds of his sale, or whether he had to navigate to a specific area of Zecco's website to pay the interest he owed.
I also sold a stock that I had purchased partially on margin, but do not see where Zecco indicates the amount of interest that accrued or how to pay it.
I will try to answer your question with the following example:
1. Let say that you start your margin account with 10K in cash
2. You purchase 15 shares of XYZ at the cost of 1000 per share (total cost=15K). Since you have only 10K of actual cash, you borrow 5K from your margin account.
3. Ten days later, XYZ instantly goes up to 1500 per share. Now, if you sell all your stocks at $1500 per share, you would get (22500 - 5K = 17500) in cash and you would have paid around $14 in margin interest. At 10% APR for borrowing 5K, the margin interest is about $1.4 per day; since you borrowed it for 10 days, your total interest = $1.4 x 10 days = $14. Of course, this $14 be deducted from your account balance at the end of the month (
it shows up on your monthly statement). You don't have to navigate to any specific area to pay for it.