San Francisco Chronicle Business & Technology News - Spoken Edition

Here’s something most brokerage firms would rather you ignore


Listen Later

Most brokerage firms have found a subtle way to squeeze money out of their customers. The trick: switching their sweep accounts from higher-yielding money market mutual funds to lower-yielding bank accounts. Sweep accounts are the places within a brokerage account where cash from dividends, interest, stock sales and other transactions accumulates. When investors buy stock or other securities, it comes out of the sweep account automatically.
...more
View all episodesView all episodes
Download on the App Store

San Francisco Chronicle Business & Technology News - Spoken EditionBy San Francisco Chronicle