Let's say that I have a margin account at a major broker like TD Ameritrade or Interactive Brokers. I am trying to calculate what my cost would be to use margin and I would also like to know when it would be charged.
For simplicity's sake, let's say that the margin stays fixed for 1 year and the borrow rate is 5%. Can I say then that my total cost on $10,000 margin would be $500 a year for a monthly rate of $42?
Do brokers like these charge interest on a daily basis?