Need help finding Discount Broker with competitive money market/savings rate

Quote from marshg:

Hi:
I have brokerage accounts with Schwab and Ameritrade. In both cases they have great services, but the rates they pay on liquid $ is laughably miniscule. Does anyone know of a discount broker [and it's okay if they have much less services than Schwab and Ameritrade, but are still able to buy and sell stocks] that pays money market rates above or close to 1% [accts held there would be for 44k and 80k]. Ideally would also have the ability to write checks or transfer to my business account.
thanks,
Marshall
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no such thing..you want discount commission, service level of "full service" brokerage firm.. + best rates in the country..i think you asking too much. you can have only one at the time,not all three.
and btw..what are we talking about? $1K in interest a year? it's pocket change at today food and gas price levels...
 
IB-AN: that's a great/clear explanation--thanks! you've got me curious about the other denomination option. Does that suggest you can get a higher liquid rate if held something in Australian dollars at Ameritrade or schwab? I understand would be subject to exchange rate risk, but if there is an easy liquid way to do this, then an explanation would be appreciated.
 
Bob:
sorry if I conveyed that I wanted full service. Not at all, minimal service is one tradeoff I'm happy to make. Just looking for barebones brokerage services and rate competitive with banks good rates. I didn't think that was a lot of ask. As to being dismissive of $1k. I don't think that way. Instead i think of it this way. It will take me less than an hour to make switch and if I save/earn $1k extra, I made $1k per hour. and if I continue to reap those savings over say 10 years, that adds up to serious amount of groceries etc. so seems worthwhile to me--if it exists
 
marshg,

I can't speak for those two brokers, although I'd assume they'd post this type of information on their website. In the interest of full disclosure, I am employed by Interactive Brokers and am therefore explaining what we offer and which I'd assume others might offer as well. In any event, IB clients may convert their USD or other cash balances into a variety of other currency denominations on our trading platform through our Forex venue referred to as IdealPro (basically a stream of executable interbank quotes).

Below is a website link which outlines the interest IB currently pays on credit balances listed by currency and size of balance:

http://individuals.interactivebrokers.com/en/p.php?f=interest

Once the Forex market reopens at 5:15 ET today, you should be able to see a stream of live quotes for the major pairs which should provide some indication of typical spreads.
 
thanks for the clarification. So if I read your chart correctly. I could earn 4.76% on Australian liquid funds--of course subject to exchange risk. Any idea of how much fluctuation in exchange risk there has been in the past [i.e trying to figure out my realistic downside; ex. of tends to fluctuate less than 5% then seems like a risk well worth taking if 20% swings, then too much like speculation].
 
Quote from marshg:

thanks for the clarification. So if I read your chart correctly. I could earn 4.76% on Australian liquid funds--of course subject to exchange risk. Any idea of how much fluctuation in exchange risk there has been in the past [i.e trying to figure out my realistic downside; ex. of tends to fluctuate less than 5% then seems like a risk well worth taking if 20% swings, then too much like speculation].
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i can help you with that-

http://finance.yahoo.com/echarts?s=...on;ohlcvalues=0;logscale=off;source=undefined

there is plenty of risks. i would not recommend this approach to ANYONE,who is looking for safe 1% return on his cash. specially in today's uncertainty. look at this 1 year chart. 20+% in one year. it can go your way or opposite.
 
As to being dismissive of $1k. I don't think that way. Instead i think of it this way. It will take me less than an hour to make switch and if I save/earn $1k extra, I made $1k per hour. and if I continue to reap those savings over say 10 years, that adds up to serious amount of groceries etc. so seems worthwhile to me--if it exists
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i wish it was that easy..1K for 1 hour job to shuffle the money from one account into another..preferably risk free.
it use to be like that(i still remember great balance transfer game), but not anymore..

here is decent local bank that paying 2% on MM account on students account..if you have child that qualify ,it's a not a bad deal..plus, you can save on taxes,if you file separate return for him. you see..i think same way as you are :p

https://www.thebeneficial.com/RatesDepositProducts.asp
 
as noted, you're a good guy Bob--thanks! As an fyi to anyone coming upon this thread I got a potentially good idea from a financial advisor when I posted this question on Linkedin who suggested looking into buying a money market ETF at a brokerage house. Not clear to me if rates are as good and of course there are small trading costs, but an option worth looking into and sharing.
Best,
Marshall G
 
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