On Jul 2, 1:01 pm, kastnna <k...@a...org> wrote:
> On Jul 2, 10:48 am, TB <b...@p...net> wrote:
>
> > kramer31 wrote:
> > > Hi.  I recently opened an IRA with Scottrade. They give 0.2% on
> > > cash holdings (which is basically nothing).  I want something with a
> > > reasonable rate of return without a time limit that I can put my money
> > > in while I am waiting to invest it.
>
> > The scenario you're describing is the reason I suggest that people look
> > closely at money-market rates when choosing a discount broker. Saving a
> > couple bucks per trade may be nothing compared to the "lost income" from
> > a chronically lousy MM rate.
>
> Amen to that! When account balances get into the 100k+ range, trading
> charges constitute fractions of a percent of the account balance. Yet,
> because the fees are up front and clearly shown on statements, people
> often throw a tantrum. Unless you're doing a lot of trading, there are
> simply too many other concerns that carry far greater weight (like
> money market rates).

Discount brokerage firms catering to active traders often pay low
interest on cash balances. At least for a taxable account, it's useful
to have more than one broker and to sweep cash using ACH to the
brokerage that has better interest rates.

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