Where to Park Funds between trades?

[JJZ]

What are people doing with funds between trades or set aside for drawdowns etc?

Do you just park it in a high interest bank account?

Do you just leave it in your brokers account? Leaving it with Commsec with earn me about 0.5%PA...

thanks
JJZ

 

[pixel]

What are people doing with funds between trades or set aside for drawdowns etc?

Do you just park it in a high interest bank account?

Do you just leave it in your brokers account? Leaving it with Commsec with earn me about 0.5%PA...

thanks
JJZ

There are better options than Commsuck.
If you qualify as a "frequent trader", Westpac will pay interest above RBA cash rate. And their interpretation of "frequent" cuts in at 3 trades in a calendar month. That's my main "parking lot".
Another option is a Macquarie CMA, which offers also around RBA cash rate.

 

[So_Cynical]

HSBC flexi saver 2% instant transfer from my HSBC settlement account.

 

[galumay]

I park mine in UBank, I dont think it makes a lot of difference as the interest rates are so low these days!

 

[pixel]

I park mine in UBank, I dont think it makes a lot of difference as the interest rates are so low these days!

To me it does make a difference.
As a long-only trader, there are periods, especially in a drawn-out falling market, when I'm 30-50% in cash.

 

[galumay]

To me it does make a difference.

You are correct, of course, and it makes a difference for everyone. It was a poor choice of words on my part.

What i should have said is that there is currently very little difference between the 2 or 3 banks that offer the best rates, I dont think its worth moving money around between them - as long as you are in one of the better ones. I seem to remember ING are one along with UBank, MEBank and RAMS.

I think UBank are still the best rate versus flexibility and lack of qualifying conditions.

 

[Muschu]

We are in the pension phase of a SMSF and keep about 30% in cash, which is within the SF. I like that to be very accessible and keep it in an ANZ Negotiator Account - which pays an interest rate a little below that of a TD.
There are probably better methods....

I'm a bit lazy around this but feel I already give $$ too much time.... And we are definitely not super wealthy, but have enough hard earned from a long career to be ok.

Currently on a brief holiday in the Philippines and surrounded by a level of poverty that I find very disturbing.... One thing / value that I hope we have passed on to our own kids is the importance of helping others - something which can done in so many ways.

I don't see the point in accumulating wealth unless it is accompanied by using it as a privileged opportunity to "give back"...

Sorry for rambling....

 

[hamli]

To me it does make a difference.
As a long-only trader, there are periods, especially in a drawn-out falling market, when I'm 30-50% in cash.

90% of time I'm 50-75% in cash. I leave it in IB... having the money available at a seconds notice is more important to me than a few extra % in interest per year.

 

[pixel]

90% of time I'm 50-75% in cash. I leave it in IB... having the money available at a seconds notice is more important to me than a few extra % in interest per year.

That's no problem for me either. I can withdraw any amount any time by cheque or online.
Neither Westpac nor Macquarie CMAs impose any access restrictions, apart from daily online limits I have set myself for security reasons.

 

[So_Cynical]

90% of time I'm 50-75% in cash. I leave it in IB... having the money available at a seconds notice is more important to me than a few extra % in interest per year.

Same with my IB account, plus its a slight pain in the ass to withdraw and deposit so i just leave it there.

 

[Trendnomics]

I'm surprised no-one has mentioned:

http://www.betashares.com.au/products/name/australian-high-interest-cash-etf/#each-overview

Currently paying 2.5% p.a., easy to trade in and out of, and pays distributions daily.

 

[So_Cynical]

I'm surprised no-one has mentioned:

http://www.betashares.com.au/products/name/australian-high-interest-cash-etf/#each-overview

Currently paying 2.5% p.a., easy to trade in and out of, and pays distributions daily.

Wow i had no idea, brilliant - pays distributions monthly.

 

[Bill M]

I'm surprised no-one has mentioned:

http://www.betashares.com.au/products/name/australian-high-interest-cash-etf/#each-overview

Currently paying 2.5% p.a., easy to trade in and out of, and pays distributions daily.

When you factor in the cost of the buy and sell brokerage it just isn't worth it. (In my case $20 in and $20 out)

I use the ING Savings Maximiser. It pays me 3.5% for my at call cash funds. When I place a buy order I simply go online and transfer funds from ING to my broker, next day it is in there ready to pay for the trade.

 

[So_Cynical]

When you factor in the cost of the buy and sell brokerage it just isn't worth it. (In my case $20 in and $20 out)

I've had 7K sitting in my IB account for 2 months getting next to nothing interest..perfect for that with $6 each way.

Edit - $12 bucks in interest per month...covers the account activity fee.