You know - I’ve been watching this thread for a while now - and downloaded and looked at the .pdf file. It looks interesting - not anything I would go for - but - on paper - there is no reason why this should not work.
The one thing that has bothered be about this thread though - is the fact that for some or the other reason - it almost seems as if it’s supposed to be some or the other ‘state secret’ that a particular broker offers interest free accounts. I mean - whoever started this thread - why not just post the brokers name?
Put it this way - if it’s a true broker - then they don’t give a continental how you trade or what you trade or whether you are making money out of the interest differential paid or received from the banks etc. etc. etc.
So - being the good person that I am (and because I’m bored and have nothing better to do with my time right now because the markets are not moving in any direction whatsoever at the moment) - I made an enquiry at ‘the best’ broker in the world - one that meets all of the above requirements - and here is the low down:
Delta Stock will open a normal interest bearing account AND an interest free account for you. They pay good interest (I’ve looked at the rates) and there is none of this ‘b*****t’ about only getting interest if your balance is a certain minimum or your lot size is a certain minimum of whatever. The minimum amount required to open an account with them is $100 or 100 Euro - and that’s it.
So - if you want to try this strategy - then - if you go to Delta - you only need to open accounts at one broker - which I’m sure will be a hell of a lot easier to manage - because - if I read this correctly - you have to continually keep balancing the accounts - which I would think would be impossible if you had accounts at two different brokers because of banking delays etc. etc. etc.
And - once again - I am in no way affiliated with Delta Stock, I do not get paid for referring anyone to them, I am just a very happy and satisfied Delta Stock client (and yes - I trade live - and have been doing so for the past six or seven months at Delta - so I’m NOT talking about demo accounts - I’m talking the ‘real deal’ here).
If you want to know more about Delta Stock then go and have a look at my messages regarding Delta Stock in the ‘Rate My Broker’ forum on this site.
If you want to know why I ‘punt’ them so heavily - especially after reading my posts regarding Delta Stock - it’s purely because I get ‘f****d’ on a daily basis by my other two brokers - but I have to stay with them until Delta goes live with their CFD’s, Metals, Oil, Commodites, and the Indices (which I’m told will be by the end of this month or early next month i.e. I trade ‘forex’ to pass the time - Indices is my thing).
If you could not be bothered to read my posts then you may as well just ‘mosey on over’ to DeltaStock Inc.
Like I said - there is nothing inherently wrong with this concept. I just know that you need a ‘s**tpile’ of money to make anything worthwhile out of it - but - like I said - on paper - it must / has to work - it’s pure math!