I want to join this retail brokerage however they pay not too good of a interest rate on EOD cash balances. Because retail only gives you 4:1 you have to put a lot of assets in. If I put cash I'm screwing myself because of the bad interest rate, however I don't want to put ALL in stock because I don't want all that risk. Can I trade off the margin say a money market fund? or any ideas? on how to get around this and not get screwed?
Interactive Brokers. Sell EFPs to get interbank interest rates, currently over 5%, on the entire account balance.
Wow that's awesome, but I'm not exactly sure how I find about EFPs. I google EFPs and don't get anything except (1.875% CAPITAL PROTECTED NOTES BASED ON THE VALUE OF THE MSCI EAFE INDEX)
What initial/maintenance margin you need for EFPs? 20% for the SSFs, or less? The position is practically risk-free, 20% margin would be too much.