I've been reading another thread about finding a way to accrue interest on the first 10000$ (which IB doesn't pay) The thread discussed using EFPs or conversions to do that The problem is that I can't seem to sell EFPs, whenever I do that nothing changes in my account tab at IB (no margin, no change in buying power etc) As for conversions, they never seem to get filled.. Could anyone help me?
This partially answers your question- I have been buying the SPDR Lehman 1-3 Month T-Bill ETF (symbol BIL). You are exposed to some extremely minor interest rate risk, but if you are holding it for any length of time, this should not be a problem. You can read more about it at: http://www.ssgafunds.com/etf/fund/etf_detail_BIL.jsp Obviously, just for overnight positions etc. the bid/ask spread alone will kill it. Not as good as a sweep into a money market fund which they should be doing (!@#&*), but maybe it will help.
Aragov, buying the T-bill SPDRs makes no difference. Unless you're buying your entire account worth, you're still not receiving interest on $10k of your cash balance.
I meant to buy BIL with your last 10k in cash, and have the rest fully invested. Not such an easy strategy, but a "workaround" for that "last mile," if there is one.