List of Brokers paying Interest on Uninvested Cash

ETJ said:
Fixed Wells Fargo & Co SD 4.65% CD 09/05/2023
9497634D5

Most of the brokered CD market is fairly similar

JPM and WF are about 4.6 for tradeable cash this AM and naturally, scale pays a better yield.

The WF CDs show a dozen folks' b/d's offering before the list truncates. Make a friend with a Bloomberg terminal to view competitive offerings

Obviously, the size market is superior. But you're probably dealing with a broker carving up the size market.
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52-Week No 912796YT0 11/03/2022 4.505% 4.730% $95.444944

this was the 52 week t bill issued on the 3rd, paying 4.73%. WF just used your money to buy the t bills,
 
David Donner said:
Robert is absolutely correct in what I am looking for. Higher interest rate on cash balance with the continued ability to still daytrade, both longing & shorting.
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Then it's best to just let the money in a trading account with a broker that pays interest on idle cash. Plenty of brokers do that, IB being one paying 3.33% after the first $10K on an IB PRO account and plenty of other brokers pay similar interest as well. For all 0.5% to 1% lower interest from broker's interest on idle cash vs. a seemingly higher interest from a callable deposit or a T-Bill, you are going to back them back 10X over once you start trading. The worst is when you see an opportunity to trade and your funds are all tied up in a callable deposit that's going to charge you a penalty for early withdrawal or a T-Bill that you are going to scramble to sell losing all the interest income anyway.
 
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Look at buying box spreads. Earn ~25bps above bills, minimal hassle to trade, and section 1256 (60% LT capital gain but state tax). IBKR margins at close to zero as well. Catch is SPX is margined at OCC so not suitable for commodities collateral but good for securities trading.

https://www.boxtrades.com/
 
lpope said:
Look at buying box spreads. Earn ~25bps above bills, minimal hassle to trade, and section 1256 (60% LT capital gain but state tax). IBKR margins at close to zero as well. Catch is SPX is margined at OCC so not suitable for commodities collateral but good for securities trading.

https://www.boxtrades.com/
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Can you elaborate what boxtrades are? seems interesting.
 
Robert Morse said:
Lightspeed today only pays about 25 bps, but we do allow the purchase of T-Bills or a Money market fund. Many of my clients prefer the Money market fund VUSXX-Vanguard Treasury Money Market Fund - https://investor.vanguard.com/investment-products/mutual-funds/profile/vusxx. We do not provide a sweep. It requires and request to buy and sell it but it is marginable at 99% and paid 2.86% last month.
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So now anything changed at lightspeed? You still don't provide sweep similar to Fidelity?
I guess no
So if I allow T-bills or money market funds - (instead keeping cash so can get interest) - and want to trade 0dte options on index like spx/ndx - how is it different from keeping cash vs money market/T-bills?

Also - with you can we stop loss limit order to exit out of credit spread ?
 
Currently about 95 bps. Yes, you can still buy or Fund with a T-bill. Yes, we still offer access to
Vanguard Treasury Money Market Fund (VUSXX). T-Bill is margined at 90% and the VUSXX 99% (after 30 days). You can use that excess for day trading leverage. Since options are not marginable, no leverage. $100,000 worth of T-bills (Not maturity value) provides an excess of $90,000. So you are in a Margin account, you can buy up to $90,000 of options. No, we do not offer a sweep to an FDIC bank account or CDs. None of our trading platform offer STOP or STOP LIMIT orders on spreads. Those are very dangerous as they can get triggered from wide markets. Does that cover your questions?
 
Robert Morse said:
Currently about 95 bps. Yes, you can still buy or Fund with a T-bill. Yes, we still offer access to
Vanguard Treasury Money Market Fund (VUSXX). T-Bill is margined at 90% and the VUSXX 99% (after 30 days). You can use that excess for day trading leverage. Since options are not marginable, no leverage. $100,000 worth of T-bills (Not maturity value) provides an excess of $90,000. So you are in a Margin account, you can buy up to $90,000 of options. No, we do not offer a sweep to an FDIC bank account or CDs. None of our trading platform offer STOP or STOP LIMIT orders on spreads. Those are very dangerous as they can get triggered from wide markets. Does that cover your questions?
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Thanks..I am still little confused - what is the difference between having 100k cash vs 100l worth of fixed income instrument ?
I understand with fixed income instrument - there will be haircut(little less than 100% BP) but apart from that what else is difference?
We are mainly interested in 0dte credit spread - so if I have lets say 90k buying power - can I buy and sell (so spread) both or I need real cash to buy the buying let of spread?
Further - lets say after having BP - based on fixed income security - if we carry the position overnight - do we need to pay interest (even if margin used is nor more than original BP we got based on FII (fixed income instrument)?
For the clients of brokers who is not giving much interest - -is there any advantage of keeping cash vs FII (instead of having FII in the account?)
 
To me, the big difference between cash and money in a MM fund or T-bills, is you need to be careful not to hold debit balances overnight often, where the interest paid is much less than the interest charged. You need to balance the desire to earn maximum interest with draw downs and typical overnight positions that are debits (Short Stock is not an offset). As to your question, any credit spread you hold overnight would not cause borrowing. Any debit spread or stock held overnight might. For day trading, the reduction in BP is the only difference.
 
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