Biltmore Capital Advisors - margin rates

[marcus_aurelius]

Has anyone used them: https://biltmoremarginlending.com? Their margin rates are 0.65%, even lower than Interactive Brokers.

[MustacheAndaHalf]

On a review site I noticed their fees were listed as "Ask firm", which is a bad sign.  They charge a range of fees, and I'm guessing the 1.75% applies to new, smaller clients.

"The annual fee varies (between 0.40% and 1.75%) depending upon the market value of the assets under management and the type of wealth management services to be rendered."
http://www.biltmorecap.com/wp-content/uploads/2019/04/BCA-3.2019-ADV-Part-2A-1.pdf#page=5'


Normally I think of ETFs as being low cost.  But according to the SEC, this company offers very high cost ETFs.  You pay 4.75% sales charge, and then 1.73% in annual expense ratio.  And if you regret it, you pay another 2% to leave the ETF within the first year.  I have no idea how an ETF offers all these horrible fees, but I think it shows the firm's true colors.  They are not a low cost provider of any kind.
(Search for "fees")
https://www.sec.gov/Archives/edgar/data/1314414/000091047206000383/finalprospectusasfiled72006w.htm

[marcus_aurelius]

Thanks for your reply. I will stay away. In case anyone wants to know, their minimum loan amount is $200K.

[catccc]

Thanks for sharing this info.  I am looking at brokerages outside of VG (where most of my NW is) to access margin loans, but probably at much smaller amounts than 200K.

[MustacheAndaHalf]

Yeah, I'd stay away as well, based on what I discovered.  To me they look like a full service hedge fund/brokerage that advertise low margin loans because they make up for it with the rest of their fees.

Last year I sent some of my assets from Vanguard to Interactive Brokers.  I think they still have the lowest overall account cost + margin loan cost.  But I think Robinhood might offer low margin rates as well, if you want alternatives.