Tips on getting over 1% interest on uninvested cash at brokers.

S

seasideheights

The new game in town is to give 1% or less on uninvested cash balances in brokerage accounts to traders. An easy profit center for the firms while making it look like their overall fees are low.

How can we traders get around this?

That's the purpose of this thread.

Here's an idea. Would this work? Buy stock symbol BIL with all of your cash , get interest near Treasury Bill rates & trade on margin, which costs no fees during the day. How does that sound?
 
Quote from seasideheights:

The new game in town is to give 1% or less on uninvested cash balances in brokerage accounts to traders. An easy profit center for the firms while making it look like their overall fees are low.

How can we traders get around this?

That's the purpose of this thread.

Here's an idea. Would this work? Buy stock symbol BIL with all of your cash , get interest near Treasury Bill rates & trade on margin, which costs no fees during the day. How does that sound?
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You can earn the equivalent of a much higher interest rate, on your entire account balance, by selling EFPs in an Interactive Brokers account.
 
There are also stock symbols for longer term treasuries.

Would brokers allow customers to buy these instead of keeping their cash with them & trading free off the margin during the day?
 
The spread between the bid and ask, and your commisions for buying it in the morning and selling before the close will probably cost you a lot more than you would make?
 
with $1 you can buy $4 worth of stock intraday
with $1 worth of stock eg. ief you can buy
$2 worth of stock.

you lose buying power.
 
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