How to not get screwed with a broker than pay bad interest

Discussion in 'Retail Brokers' started by Sky123987, Oct 17, 2007.

  1. 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?
  2. dinoman


    I get 4.6%. Just gotta do your home work its not hard to find.
  3. Care to share where, dinoman?
  4. Interactive Brokers. Sell EFPs to get interbank interest rates, currently over 5%, on the entire account balance.
  5. Htrader

    Htrader Guest

    What are EFPs?
  6. teun


    The TS didn't specify a currency. EFP's (as a product) can only be traded in $.


    MB Trading is currently paying me 4.6% through Scudder.
  8. dinoman


    There is your answer I don't use MBTrading but Scudder is the one that is paying the 4.6%.
  9. 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)
  10. KS96


    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.
    #10     Oct 18, 2007