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Interactivebrokers and interest
- Thread starter lassic
- Start date
A big fat zero. Thats why the mkt will rally at some pt. Once the dust settles people will realize they must buy some stock to get any returns at all.
They are paying interest on some currencies and balances. Its not much, but much better than others. In AUD its more than 5%??? Bad luck with USD. LOL
See on their web site:
http://www.interactivebrokers.ca/en/accounts/fees/interest.php?ib_entity=ca
BM = Benchmark Rate
USD 10,000 0% (BM - 0.5%) 100,000 0.13% (BM - 0.25%) N/A N/A
AUD 15,000 5.25% (BM - 0.5%) 150,000 5.5% (BM - 0.25%) N/A N/A
CAD 12,500 2.067% (BM - 0.5%) 125,000 2.317% (BM - 0.25%) N/A N/A
CHF 12,000 0.492% (BM - 0.5%) 120,000 0.742% (BM - 0.25%) N/A N/A
EUR 8,000 2.457% (BM - 0.5%) 80,000 2.707% (BM - 0.25%) N/A N/A
GBP 7,000 2.5% (BM - 0.5%) 70,000 2.75% (BM - 0.25%) N/A N/A
HKD 78,000 0% (BM - 0.75%) 780,000 0% (BM - 0.5%) N/A N/A
JPY 1,000,000 0.027% (BM - 0.5%) 10,000,000 0.277% (BM - 0.25%) N/A N/A
KRW 100,000,000 1% 1,000,000,000 1.25% N/A N/A
MXN 130,000 4.72% (BM - 4%) 1,300,000 5.22% (BM - 3.5%) N/A N/A
NZD 18,000 4% (BM - 2.5%) 180,000 4.75% (BM - 1.75%) 1,000,000 5.5% (BM - 1%)
SEK 80,000 3.35% (BM - 0.5%) 800,000 3.6% (BM - 0.25%) N/A N/A
See on their web site:
http://www.interactivebrokers.ca/en/accounts/fees/interest.php?ib_entity=ca
BM = Benchmark Rate
USD 10,000 0% (BM - 0.5%) 100,000 0.13% (BM - 0.25%) N/A N/A
AUD 15,000 5.25% (BM - 0.5%) 150,000 5.5% (BM - 0.25%) N/A N/A
CAD 12,500 2.067% (BM - 0.5%) 125,000 2.317% (BM - 0.25%) N/A N/A
CHF 12,000 0.492% (BM - 0.5%) 120,000 0.742% (BM - 0.25%) N/A N/A
EUR 8,000 2.457% (BM - 0.5%) 80,000 2.707% (BM - 0.25%) N/A N/A
GBP 7,000 2.5% (BM - 0.5%) 70,000 2.75% (BM - 0.25%) N/A N/A
HKD 78,000 0% (BM - 0.75%) 780,000 0% (BM - 0.5%) N/A N/A
JPY 1,000,000 0.027% (BM - 0.5%) 10,000,000 0.277% (BM - 0.25%) N/A N/A
KRW 100,000,000 1% 1,000,000,000 1.25% N/A N/A
MXN 130,000 4.72% (BM - 4%) 1,300,000 5.22% (BM - 3.5%) N/A N/A
NZD 18,000 4% (BM - 2.5%) 180,000 4.75% (BM - 1.75%) 1,000,000 5.5% (BM - 1%)
SEK 80,000 3.35% (BM - 0.5%) 800,000 3.6% (BM - 0.25%) N/A N/A
The whole reason I opened up a bank account with one of IB's banks is to transfer money around without wire fees. IB is a very profitable firm, partially from their denial of competitive interest on inactive balances. I would not move my money international just to make an additional grand per year on interest. Not worth the risk.
IB's new feature poll (http://www.interactivebrokers.com/en/general/poll/poll.php?sid=1076) mentions that EUR nominated bonds are scheduled. It would be nice to know when they will be tradeable.
For some current income, look at the LQD, an ETF specializing in Investment Grade Bonds. "No matter how gruesome the economy, no matter how troublesome the financial strain, the idea that an index of the most highly rated corporations will all fail to pay their bondholders is silly." Current yield is 6.47%.
Interest paid is based on balance, nothing under 10k, ...
At the current yield (BM - 0.5%) the US yields 0% from 0 to 100k.
All well detailed on their website.
Fees/Interest and Financing/Interest paid.
At the current yield (BM - 0.5%) the US yields 0% from 0 to 100k.
All well detailed on their website.
Fees/Interest and Financing/Interest paid.
Quote from jwcapital:
For some current income, look at the LQD, an ETF specializing in Investment Grade Bonds. "No matter how gruesome the economy, no matter how troublesome the financial strain, the idea that an index of the most highly rated corporations will all fail to pay their bondholders is silly." Current yield is 6.47%.
I dont think this is worth it. You can get almost the same yield with FNM and FRE debt, they are rated triple A and guaranteed by the government. Maintance margin is 35%. for ETF I believe its like stocks so it would be 50%
Quote from GermanTrader:
IB is a very profitable firm, partially from their denial of competitive interest on inactive balances.
This is ridiculous.
IB makes 70-80% of it's revenue from Market Making.
Small, dormant accounts cost everybody money.
If you want to park $5K from your paper route somewhere...
Open a freaking bank account.