Discussion in 'Retail Brokers' started by surfer25, Jan 26, 2009.
Can anyone tell me what IB is paying for unused funds sitting in your account?
Unless I'm reading their website wrong, it looks like they are currently paying 0%.
According to this, their current Benchmark (BM) is 0.21%:
According to this, the interest they pay on Tier 1 balances (balances between $10k and $100k) is currently BM-0.5% and the interest they pay on Tier 2 balances (balances greater than $100k) is currently BM-0.25%... both come out to a negative number... so basically 0%:
Here is more information on how they calculate monthly interest:
If anyone else reads this differently, feel free to disagree.
But you get to use there wonderfull platform TWS hahahahaha gosh what a clunker.
It is generous of IB to not pay us negative interest (e.g. charge us) for our unused funds.
Also nice of them to add mutual funds but avoid any and all money market funds, so you have no chance to get any return on those funds.
You might consider using IB's EFPs for unused funds, if you haven't already.
I've seen posts on this and I realize they're available but I have several IRAs there and this seems like an awfully big pain. I'd prefer to just buy a money market fund and forget about it.
I'll likely transfer half my funds to Fidelity where I can get a decent rate of return, and use the canadian money market ETF for the rest of my funds (that aren't being used as margin for futures positions). Then the only problem is hedging moves in CAD...
I dont think you can do EFP's in an IRA.
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