For $50K account, what is the interest rate your FCM/broker paid you?

For $50K account, what is the effective interest rate your FCM/broker paid you?

  • 0%

    Votes: 6 18.8%

  • 0.5%

    Votes: 1 3.1%

  • 1%

    Votes: 0 0.0%

  • 1.5%

    Votes: 0 0.0%

  • 2%

    Votes: 0 0.0%

  • 2.5%

    Votes: 3 9.4%

  • 3%

    Votes: 2 6.3%

  • 3.5%

    Votes: 3 9.4%

  • 4%

    Votes: 9 28.1%

  • 4.5% and ABOVE

    Votes: 8 25.0%
  • Total voters
    32
With Just2trade, you could go ~4.5%. (It may be slightly more or less depending on sweep you choose or not choose at all). Besides, they will match your current broker's margin rate if it is below Just2trade's default published margin rate. To compare the overall effective rate, you might want to consider how much a broker pay for $50k cash, how much they pay you for the proceeds from short sales and how much they will charge you for the debit balance.
 
Quote from Nasdaq5048:

U wont get 4.5% if u factor in there is no interest on 1st 10K. So, 0.8 * 4.5% is the correct anwser
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Wrong. IB customers will receive the equivalent of high interest rates for the entire account balance, IF they use IB EFPs. The lack of interest on the first $10K applies only when customers choose to earn their interest by holding cash instead of EFPs.
 

Wrong. IB customers will receive the equivalent of high interest rates for the entire account balance, IF they use IB EFPs. The lack of interest on the first $10K applies only when customers choose to earn their interest by holding cash instead of EFPs.


Would you please explain how to do this "EFP" to increase your "interest" for the FIRST 10K?

Thanks.
 
Quote from jimrockford:

Wrong. IB customers will receive the equivalent of high interest rates for the entire account balance, IF they use IB EFPs. The lack of interest on the first $10K applies only when customers choose to earn their interest by holding cash instead of EFPs.
More...

the question was "how much does your broker pay on cash" not "what can i invest my cash in". efp's and cash are not the same thing. for one, efp's don't have the same buying power. secondly, if you need to withdraw money for something, you cannot withdraw your efp; you likely have to buy some efp shares to convert back to cash. that's potentially a losing trade.

the answer remains: ib pays 3.2% a 50k cash account.

otherwise you can say i'm getting 5.05% with my broker because i put my cash into money market funds.
 
Fidelity's brokerage account would be well over 100 basis points higher than IB on an account with 50k cash balance (an extra $42/month which would quickly be offset by higher commissions if you traded actively). Lol.

FDRXX FIDELITY CASH RESERVES
NAV 1.00
7-Day Yield 4.83%
Change 0.00
% Change 0.00%
Previous NAV 1.00
Offer Price (POP) 1.00
Fund Number 55
 
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