You can have up to 50k CHF “cash” and 50k EUR “cash” in your IBKR without paying negative interest. Your total account size can be much bigger (e.g. having invested 100k in stocks, or having 100k in USD)
Nobody is saying that he/she hold cash long-term.
But if your entire portfolio and cash position is simply a lot bigger than 50k, this becomes quite relevant. For small accounts, it’s of course not an issue. You always have to have some cash on hand.
Well in that case you would anyway want to keep the cash in tranches where they are protected, e.g. in N bank accounts up to max 100k CHF. (And even then you might in some places be hit with negative interest.)
Why at IBKR?
I wonder what the business model of those broker is, they probably have a lot more fees to offset the cost then (or they like losing money, but I wouldn’t trust someone with no sound business model with my money).
I’d rather have a transparent broker like IB, I know what I’m getting, they just pass the fees through from upstream, both positive and negative (interest rate, stock exchange fees, etc.) .
Huh? What’s wrong with their 0 commisson? TD Ameritrade is not serious? IB also provides 0 trading fee scheme for US stocks and so on. So they are not serious either according to your logic? I smell some conservative and old-thinking Europeans here. Just embrace the new world and new innovation.
Yea, if I choose between selling order flow or commission, I’d still choose 0 commission with selling order flow manipulation. It’s also advantageous for day traders. There is nothing shady about it. It’s just a different way of doing business. I wouldn’t pay 40 bucks to buy or sell stocks at Swissquote for example even at a cost of less better execution.
Those 0 fee brokers also make money by not giving you the positive interest rates on e.g. USD (as least was a big source of revenue for many of them). I somehow doubt they’re happily losing money on high CHF or EUR balances which carry negative interests.
Edit: and still wondering, are there really any broker offering non negative interest rate on large CHF balance?