How to not get screwed with a broker than pay bad interest

S

Sky123987

I want to join this retail brokerage however they pay not too good of a interest rate on EOD cash balances. Because retail only gives you 4:1 you have to put a lot of assets in.

If I put cash I'm screwing myself because of the bad interest rate, however I don't want to put ALL in stock because I don't want all that risk. Can I trade off the margin say a money market fund? or any ideas? on how to get around this and not get screwed?
 
Quote from Sky123987:

I want to join this retail brokerage however they pay not too good of a interest rate on EOD cash balances. Because retail only gives you 4:1 you have to put a lot of assets in.

If I put cash I'm screwing myself because of the bad interest rate, however I don't want to put ALL in stock because I don't want all that risk. Can I trade off the margin say a money market fund? or any ideas? on how to get around this and not get screwed?
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Interactive Brokers. Sell EFPs to get interbank interest rates, currently over 5%, on the entire account balance.
 
Quote from jimrockford:

Interactive Brokers. Sell EFPs to get interbank interest rates, currently over 5%, on the entire account balance.
More...

What are EFPs?
 
Quote from jimrockford:

Interactive Brokers. Sell EFPs to get interbank interest rates, currently over 5%, on the entire account balance.
More...
The TS didn't specify a currency. EFP's (as a product) can only be traded in $.
 
Quote from Sky123987:

I want to join this retail brokerage however they pay not too good of a interest rate on EOD cash balances. Because retail only gives you 4:1 you have

If I put cash I'm screwing myself because of the bad interest rate, however I don't want to put ALL in stock because I don't want all that risk. Can I trade off the margin say a money market fund? or any ideas? on how to get around this and not get screwed?
More...

MB Trading is currently paying me 4.6% through Scudder.
 
Quote from DHOHHI:

MB Trading is currently paying me 4.6% through Scudder.
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There is your answer I don't use MBTrading but Scudder is the one that is paying the 4.6%.
 
Quote from jimrockford:

Interactive Brokers. Sell EFPs to get interbank interest rates, currently over 5%, on the entire account balance.
More...

Wow that's awesome, but I'm not exactly sure how I find about EFPs. I google EFPs and don't get anything except (1.875% CAPITAL PROTECTED NOTES BASED ON THE VALUE OF THE MSCI EAFE INDEX)
 
Quote from jimrockford:

Interactive Brokers. Sell EFPs to get interbank interest rates, currently over 5%, on the entire account balance.
More...

What initial/maintenance margin you need for EFPs?
20% for the SSFs, or less? The position is practically risk-free, 20% margin would be too much.
 
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