I trade through a LP with IB. Used to keep about 50% of money in bank, rest in IB as I don't need that much for margin (Futures only). But since then moved all $ back to IB as I don't want to give up on the interest. Any thoughts on how to keep the money on a business savings account but still have quick access? ING Direct would open a business savings account for me (they don't have business checking). Trouble is, only way to get access to the money is by transferring it to a Checking account outside ING, then wiring it to IB. The transfer from ING would take 3 business day minimum - way too long. But ING's 4.5% rate is very tempting - potentially increasing my returns by a few % points (over my Checking acount in Brick & Morter bank - 0%). In the post REFCO world, I am not too comfortable keeping too much with a broker. Appreciate any ideas
Capital One Online Savings and Money market accounts for business or personal. Current rates @ 4-4.25%. Monies accessible either thru check writing(MM only) or debit card (not VISA or MC) Schwab Banking. Current rates 4.4 %. Amongst others. Both accounts you can have monies wired into your account(s) from IB by end of day.
Thanks cstfx. I checked both Schwab & CO, but didn't see anything about business checking. It's likely they have it - would call them to confirm.
Open a TTtrader account through E-trade for your futures and open a complete savings account with e-trade bank which was recently paying 5.05%. You can transfer money back and forth and trade your futures. There E-trade Pro stock trading platform doesn't work though. Good trading!
I would look at ETrade. However, I am more of a systems trader, like IB's TWS, used to TWS's programming model and all code is written with TWS in mind. Can't change brokers that lightly. But thanks for the suggestion - it's good to have options
Just be careful because Etrade's savings account only really works if used with another Etrade acct. If you are trading and transferring money in and out of a non-etrade account they will hold your money for 3-5 days before settling (each time). I think IB's rate is close to 4% now anyway
trader_arb, that's true. That's why I talked about changing broker issue - this setup won't work very well with IB
Is anyone leary of etrade right now as I am? I keep some excess capital for personal expenses in a savings account there so I can easily transfer it to my checking acct but still get some return on it. I have been thinking of going to ING or elsewhere incase etrade implodes. I know it is insured, but who wants to deal with the FDIC and the paperwork, red tape, lost interest, etc Not likely but I don't feel I need to take unnecessary risk.
illinimatt81, It's a lot simpler in your case, I feel because you are trading in a personal capacity. Let's use ING's example. Open 1 ING Checking account Open 1 ING Savings account See http://home.ingdirect.com/products/products.asp Depending on how much money you keep, you may not even bother about the savings account, as for higher amounts, checking pays more than savings account. When you need money, ING savings -> ING checking is instantaneous. Then do wire or whatever (hmm - need to check with ING if they do outbound wire - sounds crazy, but with ING everything's possible.) Just make sure you don't keep more than 100k in each institution if you are truly paranoid. In that case, no worries, no wait in case of a bank BK. My bank, NetBank went belly up a while ago - never lost access to money.
Thanks Darth. I'm not paranoid of a collapse, I just don't want to keep money somewhere I know could fail at moment's notice if I can help it. Out of curiosity, you mention that you never lost access to funds when NetBank went belly up. What specifically happened that you didn't lose access? I did notice that ING Checking pays more with high balances, that may be a better option for me though I prefer to not keep so much cash in a lower return acct for too long. I still keep a Chase account for checking, bill pay and most of all ATM access to avoid ATM fees but the bloodsharks there only get enough to pay bills and what I need for cash. I could just leave capital at IB too. I guess I need to simplify the amount of accounts and what I am doing. I think its gotten a little out of control just to earn every buck I can and avoid every fee I can.