What Interest Rate Does Your Broker Pay?

T

Trader5287

Bank interest rates are looking better.

Does anyone have broker sweep account or money market account comparisons?

I don't see much current info on the internet. Some articles out there discussing sweep account scams but no specifics.

Still have dreams of being paid not to trade. :D

Geo.
 
I currently have 3 direct access acounts. I haven't checked into what rates I'm getting, but as fas as I can tell, I'm getting about 1% at Tradestation, 2% at Interactive, and 3% at my Penson account. I'm going to find out if I have my funds sweeping to the highest paying overnight account, because those numbers seem to be too far out of whack.
 
just looked over 10k ib paying 3.55% and over 100k they're paying an incredible 3.80%. wow never seen credit balances that high
 
IB actually does not pay anything on the first 10k, so even though the rate is generous, it's reduced by that factor. If you are keeping ver large cash there, its a small factor, but at 40 k, your effective rate would be cut by 25%.
 
Quote from joeyata1:

just looked over 10k ib paying 3.55% and over 100k they're paying an incredible 3.80%. wow never seen credit balances that high
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Wow. This is getting interesting.

So, if you choose to trade a decent sized account, that interest is offsetting data and a noticeable part of commission. It also can change risk managment/risk per trade dynamics - especially for infrequent traders.

And if we decide not to trade, at 3.8% we are getting free data to keep up with the markets, a real nice overseas vacation every year, and are outperforming many mutuals and hedgefunds. :cool:

I'm even more convinced now inflation is a serious, serious threat and Greenspan needs to take rates through the roof. :cool: :D

Geo.
 
Quote from Rickshaw Man:

If its interest your after check out Oanda, I have moved quit a bit of money into my account held with them, I get paid everyday, not ever month. Not to mention the carry trades on my long dollar postions. Trades in USDCHF, USDJPY 3.60%, GBPJPY, GBPCHF are paying 4.25%, AUDJPY 5.25%

http://fxtrade.oanda.com/fxtrade/interest_calculation.shtml
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Will Rogers quipped that he is more concerned with the return of his capital, than with the return on his capital. If Oanda goes bankrupt, you won't get your money back. Oanda has no deposit insurance. Securities brokers, by contrast, provide SIPC coverage. Stay away form retail spot FX brokers, except for Interactive Brokers, because IB holds your currency trades in its SIPC- and Lloyd's of London- insured securities account.
 
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