For some brokers net interest income provides the bulk of profits. Look at TradeStation. For the 1st quarter 2008 net interest income of $8.05 million is 60% of total pretax income of $13.5 million. For 1st quarter 2007, when rates were higher, net interest income was 82% of total pretax income.
Interest on Money in Account
- Thread starter gonnamakeit
- Start date
Quote from Daal:
no wonder IB gets so violent when people demand interest on the first $10k
For equity accounts TradeStation pays zero on the first $10k and 0.5% (50 basis points) on the amount over $10k. On futures account TradeStation pays zero on the entire balance.
TradeStation also charges for the equity and futures data feeds that IB gives customers for free.
The way to earn interest on your entire account at IB, including the first $10K, is to park your free cash in T-Bills or EFPs.