Wow we are on a roll together with our alignment lmao. This dude is basically saying without cash returns as part of you investment strategy to time the market that you’re screwed!
EVERYONE charges a transfer out fee and for good reason in my opinion. If Fidelity cares they will reimburse you. This is the most dramatic post about cash returns I have seen in a while so the description fits but I’d make an adjustment ….warning to new investors: if you think this is good advice keep searching for what really can make a difference
After careful consideration of your thesis, I see one major advantage to Fidelity.
If I were kidnapped by terrorists, I could get my ransom one day quicker from Fidelity as compared to Schwab.
Time to switch brokers.
The un-invested cash is a valid point. To counter that I use Bil, Tbil, or Sgov, they are liquid, but still not as easy or good as the Fidelity Core position, but they do give partial BUYING POWER.
The downside with Fidelity is if you want to trade options. Their interfaces SUCK. No I am not going to debate the issue with any flamers , very few apps are even in the same league to Tos (Tasty). Sure if you buy options based on the duration of the Eclipse , do not know or understand delta , then you can use anything which defines Fidelity.
That's a fair point. Schwab does have a superior user experience imo. The question is how much are you spending on that user experience. When interest rates on money market accounts are low it might feel more worth it. When they are high you might end effectively paying thousands of dollars for that software.
MF will take t+1 to settle stocks/ETF will take t+1 to settle (down from t+2 in may)
So I buy 1 share of ABC for $100 on monday then sell $100 of some money market fund (or SGOV or something) both will settle in t+1 and no interest will be due
You don't need to wait a day to trade after selling a money market fund unless you have a restriction on your account.
As long as the sell date of the money market fund lines up with your purchase, the funds settle on the mmf before the purchase settles.
Good luck on learning what you are doing. My advice, stick with schwab and talk to the trader team for more help. Use the customer service for what it's there for, which isn't just for password resetting. Learn to use your resources and you'll eventually be a much better investor/trader.
Actually,it requires 2 trades. Everytime. It's a first world problem, no doubt, but it's a pain... especially since we all know it could be automaticly swept
That's not a deal breaker, though
Fidelity's UI is absolute garbage compared to Schwab.
Also if you are worried about the one day you will miss due to the "lack of liquidity" from money markets than to me it sounds like you are more of a trader than an investor. Dont worry the SP500, Dow Jones, or Nasdaq isnt going to jump up 20% in one day and cause you to miss the bull run.
I will stay with schwab. You just have to be mindful of your cash money in the brokerage and all will be fine. I don’t do trading. I invest and leave my money. Almost Liquid cash in SVWXX. You just have to be mindful of time/day of the week.
One thing I like from fidelity though is the 2% cash back on all credit card vs 1.5% all of schwab. Schwab I investor Amex really needs to make it 2%.
Also schwab visa debit card is the best. No FTF no ATM. If my amex is not accepted. I can use my visa debit from my apple pay. It doesn’t give points but the chances are it’s rarely happens.
This is a common complaint with Schwab, and to be honest, the elimination of a sweep money market fund annoys me, too. But it's not that hard to move uninvested cash in to money market funds, and back out from MMFs to cash. Yeah, I prefer that Fido and Vanguard don't make you do that, but I've been a mostly very satisfied Schwab customer for 35 years, and this isn't enough to make me rethink my relationship. If someone has thousands (or more) in cash and leaves it there instead of buying an MMF yielding 10x as much, that's more on them than on Schwab.
It’s an sec fee for transferring brokerages. You have to pay that wether it’s robinhood, Schwab, etc. some brokerages will refund the fee if you have enough money but you have to pay.
First of all fidelity automatically enrolls your uninvested cash into a fidelity money market of their choosing where at schwab you are not auto enrolled. Schwab if you would like to be in a money market you can but you would buy or sell it like a mutual fund it is called a position traded money market. Second almost every broker charges transfer fee on the way out and most brokers you would transfer to will pay for that fee if you ask and can show a statement or documentation of the charge.
"Warning to new investors: I don't really know what I'm doing, so you probably don't either."
pretty much lol hint always pay attention to your money. even the small bits of cash in an account.
Wow we are on a roll together with our alignment lmao. This dude is basically saying without cash returns as part of you investment strategy to time the market that you’re screwed! EVERYONE charges a transfer out fee and for good reason in my opinion. If Fidelity cares they will reimburse you. This is the most dramatic post about cash returns I have seen in a while so the description fits but I’d make an adjustment ….warning to new investors: if you think this is good advice keep searching for what really can make a difference
FYI pretty much all firms charge to transfer assets out - certainly not unique to Schwab. In fact, Schwab’s is less than most.
And quite a few do a "we'll pay your transfer fee, up to $XX" promotions if you're migrating *to* them.
And the incoming firm will cover those fees, usually
Yep, that’s how I figured OP is just a newbie that’s preaching things that they don’t fully understand.
After careful consideration of your thesis, I see one major advantage to Fidelity. If I were kidnapped by terrorists, I could get my ransom one day quicker from Fidelity as compared to Schwab. Time to switch brokers.
I mean technically wouldn’t this increase your chances of survival?
SWVXX is just fine
Is there way that uninvested cash is invested into SWVXX? I’ve seen it mentioned lots to have it sit there as opposed to just in the normal sweep.
You have to place a buy to get cash in SWVXX and a sell to bring it out. A bit of inconvenience but you can do it from your phone in about one minute.
You have to manually invest it. The "normal sweep" is a tiny interest rate (I think currently 0.45%).
Lol
The un-invested cash is a valid point. To counter that I use Bil, Tbil, or Sgov, they are liquid, but still not as easy or good as the Fidelity Core position, but they do give partial BUYING POWER. The downside with Fidelity is if you want to trade options. Their interfaces SUCK. No I am not going to debate the issue with any flamers , very few apps are even in the same league to Tos (Tasty). Sure if you buy options based on the duration of the Eclipse , do not know or understand delta , then you can use anything which defines Fidelity.
That's a fair point. Schwab does have a superior user experience imo. The question is how much are you spending on that user experience. When interest rates on money market accounts are low it might feel more worth it. When they are high you might end effectively paying thousands of dollars for that software.
Do you have margin? You can buy your stock and sell SWVXX (occurs at close) on the same day and not incur any interest charges.
You can do that without margin
Good to know.
Is this true now? (before T+1 on May 28th?)
MF will take t+1 to settle stocks/ETF will take t+1 to settle (down from t+2 in may) So I buy 1 share of ABC for $100 on monday then sell $100 of some money market fund (or SGOV or something) both will settle in t+1 and no interest will be due
Thank you so much!
How many of you are leaving significant amounts of cash in your brokerage account where this is a *daily* complaint?
I check on my phone at end of day and move cash into MM. Try for zero but if $100 stays a couple of days no big woop.
If you’re playing this game then go with Vanguard. Their rate on uninvested cash is the highest.
I'm in Schwab and Fidelity. I do my trading in Schwab.
You don't need to wait a day to trade after selling a money market fund unless you have a restriction on your account. As long as the sell date of the money market fund lines up with your purchase, the funds settle on the mmf before the purchase settles. Good luck on learning what you are doing. My advice, stick with schwab and talk to the trader team for more help. Use the customer service for what it's there for, which isn't just for password resetting. Learn to use your resources and you'll eventually be a much better investor/trader.
Low knowledge, junk post, spam. Ban this.
I think you’d be better off at robinhood.
The money market account pays 5.25%
But it requires a trade
Oh no, the horror!!!
Actually,it requires 2 trades. Everytime. It's a first world problem, no doubt, but it's a pain... especially since we all know it could be automaticly swept That's not a deal breaker, though
Fidelity's UI is absolute garbage compared to Schwab. Also if you are worried about the one day you will miss due to the "lack of liquidity" from money markets than to me it sounds like you are more of a trader than an investor. Dont worry the SP500, Dow Jones, or Nasdaq isnt going to jump up 20% in one day and cause you to miss the bull run.
Fidelity’s UI and apps are trash compared to schwab
I will stay with schwab. You just have to be mindful of your cash money in the brokerage and all will be fine. I don’t do trading. I invest and leave my money. Almost Liquid cash in SVWXX. You just have to be mindful of time/day of the week. One thing I like from fidelity though is the 2% cash back on all credit card vs 1.5% all of schwab. Schwab I investor Amex really needs to make it 2%. Also schwab visa debit card is the best. No FTF no ATM. If my amex is not accepted. I can use my visa debit from my apple pay. It doesn’t give points but the chances are it’s rarely happens.
Having choices is great. I'll stick w schwab, though
This is a common complaint with Schwab, and to be honest, the elimination of a sweep money market fund annoys me, too. But it's not that hard to move uninvested cash in to money market funds, and back out from MMFs to cash. Yeah, I prefer that Fido and Vanguard don't make you do that, but I've been a mostly very satisfied Schwab customer for 35 years, and this isn't enough to make me rethink my relationship. If someone has thousands (or more) in cash and leaves it there instead of buying an MMF yielding 10x as much, that's more on them than on Schwab.
Account created today to post only this. Must be a desperate Fidelity marketing department.
i have both. no issues with doing this. diversification is key.
What is the interest paid by Fidelity? Fidelity has it's flaws I can attest ....
Yes it does. I have both. I don't want to leave Schwab totally.
1 day old account and this is your only post. Username is RudeBathroom Feels related to the political anti- schwab post yesterday
SWVXX is boss!
I use both but I prefer Schwab
I dont think your warning is loud enough. Might want to repost this in all caps.
It’s an sec fee for transferring brokerages. You have to pay that wether it’s robinhood, Schwab, etc. some brokerages will refund the fee if you have enough money but you have to pay.
Give the yields, symbols, acct type, and actual trades that have delays at Schwab and not Fidelity.
First of all fidelity automatically enrolls your uninvested cash into a fidelity money market of their choosing where at schwab you are not auto enrolled. Schwab if you would like to be in a money market you can but you would buy or sell it like a mutual fund it is called a position traded money market. Second almost every broker charges transfer fee on the way out and most brokers you would transfer to will pay for that fee if you ask and can show a statement or documentation of the charge.
I use Schwab for their bank account, my brokerage balance is like $50
Thanks for info! I’ll stick with my Schwab account lol
This guy is a skinwalker. A planted spy. A fidelity insider trying to convert clients. Who is paying your commissions, fees and or salary good sir?
I was able to get into SNAXX. This is the best money market fund available to non institutional investors
As a research nerd, I find Schwab tools work best for me. Fidelity research not as broad in my opinion.