In a normal interest rate environment IB has competitive interest rates on cash. It is this low interest rate environment and their benchmark of Fed Funds that make their current rates not competitive with simple money market funds.
Are you an idiot? What if 10% fail to pay? This thing is already down 10% and WAS down 20%. For those looking to preserve capital it has been a disaster. Pass wind elsewhere.
The biggest fallacy of this thread is that anyone should be worried about earning another point of INTEREST. People should be fully invested in well chosen stocks (see my thread on MLP in the 'stocks' forum.) If one finds peace of mind in earning some 'interest', then sell some calls against the long positions, though that really isn't a bright move in this environment. Damn. Earn some interest after we inflate our way out of this, rates are back above 14%, and Nodrama puts Volcker back in charge of the Fed.
Agreed... if you're a successful trader then technically you're already making a very high rate of return on your money anyways... my guess is that only a losing trader would futz around with so much risk for just a few meager points of interest.
ok, you are successful trader,making decent amount of money every month,no debt, but your "system" or your "risk" model does not allow you to trade every penny of your account X 4.. what you are going to do with those idle money? inflation is still out there...