Better Money Management than IB?

P

PeterDalton

Hi folks,

I've been with IB for years now, however the cost of them not paying me interest on the first 10 grand (haven't checked real recently, but I assume this is still the case, judging by the interest payout I am getting from them) is growing with each interest rate hike, now at about $300/yr just for the pleasure of parking one's money there and no T-bill margin option like most futures brokers have.

I have plenty of ideas about where to move my futures business, however I am looking for a stock broker who has commissions comparable to IB or even a little higher (I usually trade 100 shares or less at a time so that is one buck per trade) but has good money management such as a daily sweep in/out of money market account.

Any suggestions?

Thanks in advance!

Peter Dalton
 
Quote from PeterDalton:


I have plenty of ideas about where to move my futures business, however I am looking for a stock broker who has commissions comparable to IB or even a little higher (I usually trade 100 shares or less at a time so that is one buck per trade) but has good money management such as a daily sweep in/out of money market account.
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MB Trading. They do pay interest on all funds in your account.

http://www.mbtrading.com/ratesStocks.asp
 
Quote from PeterDalton:

Hi folks,

I've been with IB for years now, however the cost of them not paying me interest on the first 10 grand (haven't checked real recently, but I assume this is still the case, judging by the interest payout I am getting from them) is growing with each interest rate hike, now at about $300/yr just for the pleasure of parking one's money there and no T-bill margin option like most futures brokers have.

I have plenty of ideas about where to move my futures business, however I am looking for a stock broker who has commissions comparable to IB or even a little higher (I usually trade 100 shares or less at a time so that is one buck per trade) but has good money management such as a daily sweep in/out of money market account.

Any suggestions?

Thanks in advance!

Peter Dalton
More...

Yes, it is still the same.

Apart from the fact that there's no interest for the first 10k, IB calculates interest separately on each balance (per account and per currency). You should note this adverse effect on your interest receviables.

Here's what I found:
The interest benefits are somewhat offset in several ways:

* There is never any interest for the first specified amount in "Tier I", even if your total sum of money is over "Tier I" threshold. For example, 'customers never gain any interest for the first $10,000 in USD in that case, over if they deposit more than $10,000
* Different interest rates are attached to different tiers/parts of the whole sum of money, ie some money will earn more interest, some less
* Each sum of money per sub-accounts (ie securities & commodities accounts) and per currency is counted separately in interest calculations. For example, if you have 2 sums of money in AUD and HKD, each sum has to surpass its own "Tier I" threshold in order to start earning interest for any extra money
* Due to the fact each sector (divided by sub-accounts and then by currencies) has its own balance, you may be charged interest payments in the end even if your total balance is positive (since you may have negatives in sub-balances).

The real interest rates, after consideration of the above factors, are much lower than expected.
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