Tips on getting over 1% interest on uninvested cash at brokers.

Discussion in 'Retail Brokers' started by seasideheights, Aug 21, 2007.

  1. The new game in town is to give 1% or less on uninvested cash balances in brokerage accounts to traders. An easy profit center for the firms while making it look like their overall fees are low.

    How can we traders get around this?

    That's the purpose of this thread.

    Here's an idea. Would this work? Buy stock symbol BIL with all of your cash , get interest near Treasury Bill rates & trade on margin, which costs no fees during the day. How does that sound?
     
  2. zdreg

    zdreg

    what is the current rate of return on this instrument?
     
  3. Bob111

    Bob111

  4. You can earn the equivalent of a much higher interest rate, on your entire account balance, by selling EFPs in an Interactive Brokers account.
     
  5. It closely and intentionally tracks the rate on 3 month US Treasury bills.
     
  6. No, it is currently much less. It tracks the rate on 3-month T-bills.
     
  7. There are also stock symbols for longer term treasuries.

    Would brokers allow customers to buy these instead of keeping their cash with them & trading free off the margin during the day?
     
  8. The spread between the bid and ask, and your commisions for buying it in the morning and selling before the close will probably cost you a lot more than you would make?
     
  9. zdreg

    zdreg

    with $1 you can buy $4 worth of stock intraday
    with $1 worth of stock eg. ief you can buy
    $2 worth of stock.

    you lose buying power.
     
  10. Why don't you buy short term tresuries? You would still get 4-1 intraday buying power.
     
    #10     Aug 21, 2007