What does Fidelity do with cash in Individual Brokerage account?
Asking it here after spending 1 hour with Fidelity consultant on phone, who couldn’t answer clearly. 1) So my understanding is that if I transfer cash in this account, it is automatically invested in a money market fund SPAXX. Is this correct? 2) How can I find out the “Total Cost Basis” in this account? This column shows n/a. I want to know how many $$$ I earned by just parking my cash here? Note I constantly trade from this account so looking at statements is not effective. 3) Fidelity claims that cash in this account is gaining 4.97% yield as of today. But this changes every week. I was wondering if I should put money here or Robinhood Gold that gives 4.9% yield. I don’t think their APY fluctuates weekly. Anyone knows how frequently that changes? 4) What is the benefit of opening Fidelity cash management account if I already have a brokerage account? Any cash kept in brokerage will earn the same APY as cash management account (via SPAXX investment)?
1. Yes 2. I don't think they show cost basis for that. You can go to activity tab and filter by spaxx to see the dividends
I don't have the answer but it's as easy as calling them up. Also, do let us know what you learn😜
Did you read the post?
I don't know. Did you?
Make share to change your “core” position to SPAXX. There are a few options. There is a drop down when you click your cash in your account
Robinhood no longer has margin spending in their margins account. Only buy stock on margin. Fidelity has both (withdraw cash on margin at like 13%), half of credit cards rates I believe
I didn’t understand your comment. Can you explain
1. Only Fidelity can answer this for you. Depends on your account settings 2. Filter by dividends paid to your account. 3. No answer 4. Cash management is FDIC insured. SPAXX is not.
I think they take it and invest it in t-bills
May be. But do you have answers to any of my questions?