T-Bills or FCM interest payments.

C

CPTrader

Friends,

Presented with the ff offer what would you choose:

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We will pay 75% interest based on the average t-bill rate less 15bps as long as the net liquidity is > $250,000. Or you can buy t-bills which 95% is good for margin. For each t-bill purchase there is a $25 fee.

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In general do people prefer to buy Tbills or just collect interest payments.

What is a good interest rate to receive on balances.

Thanks.
 
IB seems to be the one of few brokers paying interest using Fed Funds as the benchmark - most brokers use 30 day T-bills.

In general, what do people prefer/recommend: purchasing T-bills or receiving interest payments from the broker?

And if peple prefer receiving interest payments - what is the preferred benchmark/interest amount?

Thanks.
 
I have a 3 month T Bill in my futures account.
It is exempt from State and local tax, mm funds are not.

Good trading!

e s
 
Brokers obviously make intherest it is called "float" by my broker. sometimes it is a give and take with brokers. My broker does not offer interest but the commissions are less than IB or TS and the margins are only $500. I dont really care about margins but the low margins are helpful because I dont need to keep as much money in my account that i don't get interest on. I would take low rates, customer servie and low margins over float any day.
 
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