Hello,
Quick background: I've been investing for a month and just got approved for a margin account. I am set up with TDA, and they've automatically enabled a sweep account with my new Margin account.
I placed a trade this morning and half the profit went to my cash account and then the other half got swept. My Balance shows I can only withdraw the cash and not the other half automatically deposited in the Sweep Account. Also, the trade wasn't done on margin..
How does this work? Will it always sweep 50%? And more importantly, will I ever be able to withdraw the money swept?
Thank you
Question Regarding Sweep Accounts
Re: Question Regarding Sweep Accounts
Welcome to Bogleheads.
Read up on the wiki and the type of investing that is preferred here.
It sounds like you are day trading/gambling. Margin trades and sweeps. I'd close that account and move on.
Open an account at Vanguard or Fidelity and do a buy and hold of low cost, broad based, diversified index funds.
Read up on the wiki and the type of investing that is preferred here.
It sounds like you are day trading/gambling. Margin trades and sweeps. I'd close that account and move on.
Open an account at Vanguard or Fidelity and do a buy and hold of low cost, broad based, diversified index funds.
Re: Question Regarding Sweep Accounts
Sorry if the post was inappropriate, I am just seeking an answer to this. At least for me day trading has been profitable with some holds, but thank you for the advice
Re: Question Regarding Sweep Accounts
I don't understand what has happened, but I think it is a question that should be directed to TDA for an explanation.
Bob
Re: Question Regarding Sweep Accounts
If you did a stock trade this morning it would not settle for 2 days (T+2 - next Tuesday). It's probably best to call TDA since they could properly interpet your account activity.
The closest helping hand is at the end of your own arm.
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Re: Question Regarding Sweep Accounts
Not so much that the post was "inappropriate" [Don't Bite The Newbies] but most people on here will have no idea what you're talking about.
Re: Question Regarding Sweep Accounts
I've had a margin account at TDAmeritrade for more than 20 years.
One would have a sweep account whether one had a margin account or not, right? That is, one would have a cash settlement account regardless.
I don't understand what you did. You placed a trade and .... Did you do a buy or a sell? Or both?
It takes time for trades to settle. Until a sell transaction settles, one doesn't have complete access to the money --- unless one borrows money from the broker on margin. Typically, one cannot borrow more than half the value of one's account. And when one borrows money, then one pays interest.
One would have a sweep account whether one had a margin account or not, right? That is, one would have a cash settlement account regardless.
I don't understand what you did. You placed a trade and .... Did you do a buy or a sell? Or both?
It takes time for trades to settle. Until a sell transaction settles, one doesn't have complete access to the money --- unless one borrows money from the broker on margin. Typically, one cannot borrow more than half the value of one's account. And when one borrows money, then one pays interest.
Re: Question Regarding Sweep Accounts
Yes, so what I did was buy a stock in the A.M. and sold it within the morning. I did contact TDA and they confirmed what was already said here, thanks! It was the unsettled funds, and I am able to withdraw the amount swept after settling.
For anyone else out there: you can disable this, but at the cost of losing your FDIC Insurance on your excess cash.
Thanks again!
For anyone else out there: you can disable this, but at the cost of losing your FDIC Insurance on your excess cash.
Thanks again!