Interactivebrokers and interest

Quote from GermanTrader:

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.
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In a normal interest rate environment IB has competitive interest rates on cash. It is this low interest rate environment and their benchmark of Fed Funds that make their current rates not competitive with simple money market funds.
 
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%.
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Are you an idiot? What if 10% fail to pay?

This thing is already down 10% and WAS down 20%.

For those looking to preserve capital it has been a disaster.

Pass wind elsewhere.
 
The biggest fallacy of this thread is that anyone should be worried about earning another point of INTEREST. People should be fully invested in well chosen stocks (see my thread on MLP in the 'stocks' forum.) If one finds peace of mind in earning some 'interest', then sell some calls against the long positions, though that really isn't a bright move in this environment.

Damn. Earn some interest after we inflate our way out of this, rates are back above 14%, and Nodrama puts Volcker back in charge of the Fed.
 
Quote from BlueHorseshoe:

The biggest fallacy of this thread is that anyone should be worried about earning another point of INTEREST. People should be fully invested in well chosen stocks (see my thread on MLP in the 'stocks' forum.) If one finds peace of mind in earning some 'interest', then sell some calls against the long positions, though that really isn't a bright move in this environment.

Damn. Earn some interest after we inflate our way out of this, rates are back above 14%, and Nodrama puts Volcker back in charge of the Fed.
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Agreed... if you're a successful trader then technically you're already making a very high rate of return on your money anyways... my guess is that only a losing trader would futz around with so much risk for just a few meager points of interest.
 
Quote from Jachyra:

Agreed... if you're a successful trader then technically you're already making a very high rate of return on your money anyways... my guess is that only a losing trader would futz around with so much risk for just a few meager points of interest.
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ok, you are successful trader,making decent amount of money every month,no debt, but your "system" or your "risk" model does not allow you to trade every penny of your account X 4..
what you are going to do with those idle money? inflation is still out there...
 
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