I got charged $9000 as Hard to Borrow interest fees in Etrade for last month. But I didnot hold any short position overnight. After series of calls with Etrade customer service, I found out that Etrade charges you interest on short positions for one day even if you close out the position the same day. For example, I shorted 1000 shares of $HMNY on Monday and covered the position on same day, I am still charged interest for 1000 shares for 1 day. It seems this is mentioned in the Hard to Borrow agreement we signed but it is so tough to find this agreement in etrade website or google.
The next SHOCKING thing is you get charged everytime you open a short position. For example, if I short sell 1000 shares of HMNY and bought it back. Then on the same day, I shorted 1000 shares again, now you get charged interest for 2000 shares which is ridiculous because at a time i had a short position of max 1000 shares. I was not aware of this rule and shorted $HMNY multiple time in a single day and they charged me $5000 as interest. Similarly I was charged $4000 more on multiple stocks even if I closed the position on same day and didn't hold any short position overnight.
This is not seen in other brokers and I highly suggest staying away from Etrade for shorting. I spoke with customer service as I am unaware of this rule and asked them atleast for a partial refund. But they said the fees are final and cant be refunded. I lost 25% of my account just for Hard to Borrow interest fees which is ridiculous and depressing.
PLEASE BE AWARE OF THIS BEFORE USING ETRADE.