Ronald raygun talks about backtax certifies. They are (supposedly) good for 10 to 15% ROI a year...
Ronald raygun talks about backtax certifies. They are (supposedly) good for 10 to 15% ROI a year...
You're right, I arrived at the middle of the conversation and I think I missed what the initial purpose was... but I feel that the conversation turned at some stage to risking more than a fair amount of equity.
However, if pulling interest from residual capital was really the first point, I would agree that in an individual account situation this unquestionably may be rewarding(though very limited). But, together with withdrawal/transfer fees, limited control of assets, etc., this isn't really a workable situation from the managed account world that I reside in.
If you can get a broker and a high-yielding bank account with low fees for how frequently you move your money back and forth and your trading egy is conservative and does not hold much draw down, you may actually make a couple more bucks here and there.
Just wanted to donate my two pips value to the thread of the year (or possibly that was 2008, so I am too late?)
How I see it, fresh margin lying idle in a trading account is a complete waste. I have investments which are earning 9%-10% p.a. elsewhere (and I'd like to think are invested about as securely as you can hope for, in such troubled times).
There's also the chance that a broker may perform a Refco, and some funds not held in a segregated account are potentially at risk.
Agreed. My cash is spread among different brokers but even this is not ideal. They can fold enjoy a row of dominoes. Any money kept in a account, past what we need to trade , is at risk for little benefit.
Like MRGreen suggests, our forex risk money can be kept in a safer place with just what we actually need to prevent margin calls being placed in the forex account. Money earmarked for forex trading, but stored elsewhere, can be considered in our MM formulas.