T-Bills or FCM interest payments.

Discussion in 'Professional Trading' started by CPTrader, Dec 12, 2007.

  1. Friends,

    Presented with the ff offer what would you choose:

    We will pay 75% interest based on the average t-bill rate less 15bps as long as the net liquidity is > $250,000. Or you can buy t-bills which 95% is good for margin. For each t-bill purchase there is a $25 fee.


    In general do people prefer to buy Tbills or just collect interest payments.

    What is a good interest rate to receive on balances.

  2. BJL


    3m t-bills 2,87%

    75% - 0.15 equals about 2%

    if you have 500k at IB you'll get about 4%
  3. IB seems to be the one of few brokers paying interest using Fed Funds as the benchmark - most brokers use 30 day T-bills.

    In general, what do people prefer/recommend: purchasing T-bills or receiving interest payments from the broker?

    And if peple prefer receiving interest payments - what is the preferred benchmark/interest amount?

  4. Any one?
  5. Surdo


  6. Thanks, Surdo. Like your happy spirit. Now, please respond to the questions.

  7. Surdo


    I have a 3 month T Bill in my futures account.
    It is exempt from State and local tax, mm funds are not.

    Good trading!

    e s
  8. Brokers obviously make intherest it is called "float" by my broker. sometimes it is a give and take with brokers. My broker does not offer interest but the commissions are less than IB or TS and the margins are only $500. I dont really care about margins but the low margins are helpful because I dont need to keep as much money in my account that i don't get interest on. I would take low rates, customer servie and low margins over float any day.