There's a long thread about using EFPs to gain interest on the first $10,000 with an IB account but this is only helpful if your base currency is USD. If your base currency is GBP (or any non-USD currency) you would be taking on foreign currency risk if you used EFPs. My account is going to be dormant for a few months and I'm wondering whether there's a way of getting interest on the first $10,000 (approximately £5000).
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IB: earn interest on the first $10,000 with a GBP account?
- Thread starter notouch
- Start date
or you can buy the US EFP and hedge the exchange rate at OANDA or something
Yes. Sell EFP
Is actually a pretty good deal if you dont mind the hassle to readjust every now and then. EFP pays you 5.4% or 5.5% (See MYL) if you are lucky. Assuming IB does pay interest on all balance, you still only get 4.8%. That's 60 bucks difference in a year for 10K.
Is actually a pretty good deal if you dont mind the hassle to readjust every now and then. EFP pays you 5.4% or 5.5% (See MYL) if you are lucky. Assuming IB does pay interest on all balance, you still only get 4.8%. That's 60 bucks difference in a year for 10K.
Quote from notouch:
There's a long thread about using EFPs to gain interest on the first $10,000 with an IB account but this is only helpful if your base currency is USD. If your base currency is GBP (or any non-USD currency) you would be taking on foreign currency risk if you used EFPs. My account is going to be dormant for a few months and I'm wondering whether there's a way of getting interest on the first $10,000 (approximately £5000).
i have taken currency risk lately as ⬠and £ traded at historic new highs and got "lucky". my funds are ⬠denominated but my base is $ : converted all non-base [£-â¬-Â¥-₩-A$-HK$] into base when ⬠was hanging around the mid 700.
Quote from notouch:
There's a long thread about using EFPs to gain interest on the first $10,000 with an IB account but this is only helpful if your base currency is USD. If your base currency is GBP (or any non-USD currency) you would be taking on foreign currency risk if you used EFPs. My account is going to be dormant for a few months and I'm wondering whether there's a way of getting interest on the first $10,000 (approximately £5000).
Is it worth the hassle for just a few months?
Assumming you go for three months: after tax, commisions and spreads it works out to be less than £50..