Later this year, Fidelity is planning to cut off access for independent advisors to using its high-yield money-market funds as the sweep account option for client cash. Instead, new nonretirement accounts will have to use its lower-yielding FCash account for uninvested cash. The move brings Fidelity closer in line with rival Charles Schwab, where trades or investment income automatically flow into the firm’s low-yield sweep account. Fidelity’s current FCash rate is higher than what Schwab pays, but still well below some money-market funds currently available to clients.
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