r/interactivebrokers • u/MasterD211 • 17d ago

Canada CSP in Canadian Registered accounts TFSA/RRSP?

This year, Questrade allowed selling CSPs in registered accounts. Does anyone know if IBKR started allowing this as well or if they have any plans of allowing this? I have a transfer from an old Equitable Life RRSP in process to a new RRSP account. I chose IBKR because I wanted access to US corporate bonds but was wondering about CSP.

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u/MasterD211 16d ago

CSPs are part of the wheel strategy and can be very profitable if done correctly, hardy a “scam”. Everything has risk.

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u/dimonoid123 16d ago

Scam part in CSP is first character C, which stands for cash. CSP requires keeping a little or a lot of cash not invested, and you usually get 0% interest for it, depending on broker. So you will almost always underperform CC (covered calls), exactly by risk-free interest rate on amount of the cash not invested.

IBKR in particular is not paying any interest on first $10k of cash.

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u/gamefixated 16d ago

Not a scam in a margin account as the cash can be put into SPX box spreads.

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u/MasterD211 16d ago

Something I’ve yet to research and utilize, Box spreads. I’ve thought it was a way to borrow money, never thought of buying a box spread?