TD Ameritrade Money Market Options

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ohboy!
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Re: TD Ameritrade Money Market Options

Post by ohboy! » Fri Feb 22, 2019 6:51 pm

Droptoptop wrote:
Fri Feb 22, 2019 4:05 am
cas
ohboy! wrote:
Wed Feb 20, 2019 2:28 am
“You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.”

Wouldn’t CIT bank high yield savings with FDIC be safer?
Technically, yes, but practically there's not much difference in safety. CIT is currently offering 1.85% and PVOXX is offering 2.57%. If I had only $10,000 in cash savings and I was having trouble sleeping at night, then sure I'd forgo the extra $72 a year and go with CIT. But if I recognize the additional risk is de minimis, and I had $1,000,000 in cash, I'd go for PVOXX and take the extra $7,200 a year.
CIT has 2.45% with 25k balance or $100p month qualifying deposit.

Droptoptop
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Re: TD Ameritrade Money Market Options

Post by Droptoptop » Sat Feb 23, 2019 2:38 pm

Oh wow, didn't see that 2.45% program from CIT. That's a very good rate for a bank account. I've banked with Everbank (now TIAA Bank) for years and they were historically among the top banks for high rates, but even their 1 year intro rate right now is only 2.15%. CIT's 2.45% is presumably indefinite and will adjust up to match the T-bill rate?

Anyway, yes, if you have less than $250k in cash, that's the way to go given FDIC insurance limits, though in my case regardless of assets, I have to move money around frequently to fund various non stock investments and between my various entities, so I'd rather have my cash and banking in the same institution as my stock portfolio, which TD Ameritrade accommodates well, so I'm still going to stick with TDA. TDA also makes it quite easy to move money between third party institutions, allowing free overnight ACH to and from third party accounts, which is a big plus for me.

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market timer
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Re: TD Ameritrade Money Market Options

Post by market timer » Thu Mar 07, 2019 8:41 pm

From what I gather, Federated funds are not available as sweep accounts at TD Ameritrade. Has anyone looked into the possibility of writing software that automatically sweeps unused cash into a money market mutual fund? Seems like it would be relatively easy as far as algorithmic trading goes.

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whodidntante
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Re: TD Ameritrade Money Market Options

Post by whodidntante » Thu Mar 07, 2019 8:46 pm

market timer wrote:
Thu Mar 07, 2019 8:41 pm
From what I gather, Federated funds are not available as sweep accounts at TD Ameritrade. Has anyone looked into the possibility of writing software that automatically sweeps unused cash into a money market mutual fund? Seems like it would be relatively easy as far as algorithmic trading goes.
Some brokers offer an API that could be used to build something like that. It looks like TDA has trade automation capability.
https://developer.tdameritrade.com/

neilpilot
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Re: TD Ameritrade Money Market Options

Post by neilpilot » Thu Mar 07, 2019 10:20 pm

market timer wrote:
Thu Mar 07, 2019 8:41 pm
From what I gather, Federated funds are not available as sweep accounts at TD Ameritrade. Has anyone looked into the possibility of writing software that automatically sweeps unused cash into a money market mutual fund? Seems like it would be relatively easy as far as algorithmic trading goes.
Your assumption is not consistent with my post and other's earlier in this thread. PTTXX has been set up as a sweep in each of our 5 accounts.

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market timer
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Re: TD Ameritrade Money Market Options

Post by market timer » Fri Mar 08, 2019 8:38 pm

neilpilot wrote:
Thu Mar 07, 2019 10:20 pm
market timer wrote:
Thu Mar 07, 2019 8:41 pm
From what I gather, Federated funds are not available as sweep accounts at TD Ameritrade. Has anyone looked into the possibility of writing software that automatically sweeps unused cash into a money market mutual fund? Seems like it would be relatively easy as far as algorithmic trading goes.
Your assumption is not consistent with my post and other's earlier in this thread. PTTXX has been set up as a sweep in each of our 5 accounts.
I asked customer service about having PTTXX as a sweep account, but it was not an option. Only options were 1.1% on accounts above $1M and 0.75% on accounts above $500K. Each account was considered in isolation in determining whether I met the threshold.

neilpilot
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Re: TD Ameritrade Money Market Options

Post by neilpilot » Fri Mar 08, 2019 11:32 pm

market timer wrote:
Fri Mar 08, 2019 8:38 pm
neilpilot wrote:
Thu Mar 07, 2019 10:20 pm
market timer wrote:
Thu Mar 07, 2019 8:41 pm
From what I gather, Federated funds are not available as sweep accounts at TD Ameritrade. Has anyone looked into the possibility of writing software that automatically sweeps unused cash into a money market mutual fund? Seems like it would be relatively easy as far as algorithmic trading goes.
Your assumption is not consistent with my post and other's earlier in this thread. PTTXX has been set up as a sweep in each of our 5 accounts.
I asked customer service about having PTTXX as a sweep account, but it was not an option. Only options were 1.1% on accounts above $1M and 0.75% on accounts above $500K. Each account was considered in isolation in determining whether I met the threshold.
How long ago did you ask? I do know this is a relatively new option, and that all TDA CS agents may not yet know the details.

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market timer
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Re: TD Ameritrade Money Market Options

Post by market timer » Fri Mar 08, 2019 11:48 pm

neilpilot wrote:
Fri Mar 08, 2019 11:32 pm
market timer wrote:
Fri Mar 08, 2019 8:38 pm
neilpilot wrote:
Thu Mar 07, 2019 10:20 pm
market timer wrote:
Thu Mar 07, 2019 8:41 pm
From what I gather, Federated funds are not available as sweep accounts at TD Ameritrade. Has anyone looked into the possibility of writing software that automatically sweeps unused cash into a money market mutual fund? Seems like it would be relatively easy as far as algorithmic trading goes.
Your assumption is not consistent with my post and other's earlier in this thread. PTTXX has been set up as a sweep in each of our 5 accounts.
I asked customer service about having PTTXX as a sweep account, but it was not an option. Only options were 1.1% on accounts above $1M and 0.75% on accounts above $500K. Each account was considered in isolation in determining whether I met the threshold.
How long ago did you ask? I do know this is a relatively new option, and that all TDA CS agents may not yet know the details.
This week.

neilpilot
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Re: TD Ameritrade Money Market Options

Post by neilpilot » Sat Mar 09, 2019 8:42 am

market timer wrote:
Fri Mar 08, 2019 11:48 pm
neilpilot wrote:
Fri Mar 08, 2019 11:32 pm
market timer wrote:
Fri Mar 08, 2019 8:38 pm
neilpilot wrote:
Thu Mar 07, 2019 10:20 pm
market timer wrote:
Thu Mar 07, 2019 8:41 pm
From what I gather, Federated funds are not available as sweep accounts at TD Ameritrade. Has anyone looked into the possibility of writing software that automatically sweeps unused cash into a money market mutual fund? Seems like it would be relatively easy as far as algorithmic trading goes.
Your assumption is not consistent with my post and other's earlier in this thread. PTTXX has been set up as a sweep in each of our 5 accounts.
I asked customer service about having PTTXX as a sweep account, but it was not an option. Only options were 1.1% on accounts above $1M and 0.75% on accounts above $500K. Each account was considered in isolation in determining whether I met the threshold.
How long ago did you ask? I do know this is a relatively new option, and that all TDA CS agents may not yet know the details.
This week.
Then of course I can't explain why you weren't offered a sweep into PTTXX, since I'm one of several posters to this thread that apparently made this change successfully in January. In fact I made the change after learning about this relatively new option here. I can only surmise that you need to find a better customer service contact at TDA.

snowman
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Re: TD Ameritrade Money Market Options

Post by snowman » Sat Mar 09, 2019 9:30 am

Moved couple accounts to TDA recently to collect signing bonuses. I searched for suitable MMF before moving accounts. I don't trade much, so not interested in sweep vehicle. Searching online, I learned about PCOXX as the best option, and I decided to test the waters after the move.

I can confirm what others have already posted - there is no minimum to buy, there is no minimum holding period enforced, and there is no transaction fee. This contradicts what website says; wonder if/when TDA decides to update it.

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BogleFanGal
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Re: TD Ameritrade Money Market Options

Post by BogleFanGal » Sun Mar 10, 2019 10:44 am

snowman wrote:
Sat Mar 09, 2019 9:30 am
Moved couple accounts to TDA recently to collect signing bonuses. I searched for suitable MMF before moving accounts. I don't trade much, so not interested in sweep vehicle. Searching online, I learned about PCOXX as the best option, and I decided to test the waters after the move.

I can confirm what others have already posted - there is no minimum to buy, there is no minimum holding period enforced, and there is no transaction fee. This contradicts what website says; wonder if/when TDA decides to update it.
Just curious: any reason you didn't go with higher yielding PVOXX? I'm in BIL now and debating PVOXX vs PCOXX - not sure what the real difference is risk-wise or cost-wise. But good to know I finally have an option to the low yielding BIL as a conservative choice for my HSA.
"Life would be infinitely happier if we could only be born at the age of eighty and gradually approach eighteen." Mark Twain

snowman
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Re: TD Ameritrade Money Market Options

Post by snowman » Sun Mar 10, 2019 12:53 pm

BogleFanGal wrote:
Sun Mar 10, 2019 10:44 am
snowman wrote:
Sat Mar 09, 2019 9:30 am
Moved couple accounts to TDA recently to collect signing bonuses. I searched for suitable MMF before moving accounts. I don't trade much, so not interested in sweep vehicle. Searching online, I learned about PCOXX as the best option, and I decided to test the waters after the move.

I can confirm what others have already posted - there is no minimum to buy, there is no minimum holding period enforced, and there is no transaction fee. This contradicts what website says; wonder if/when TDA decides to update it.
Just curious: any reason you didn't go with higher yielding PVOXX? I'm in BIL now and debating PVOXX vs PCOXX - not sure what the real difference is risk-wise or cost-wise. But good to know I finally have an option to the low yielding BIL as a conservative choice for my HSA.
I am a 3 fund ETF guy (VTI, VXUS, and BND), and I wanted to put small portion of BND into good MMF. Searching TDA website produced no results, so I googled and found PCOXX as the most recommended MMF at TDA. It's yield equals or exceeds VMMXX, and there are no trading fees or restrictions, so that's good enough for me.

PVOXX never came up when googling specific MMF requirements at TDA, so I never even considered it. I have no idea if you can sell it in less than 180 days without penalty, like you can with PCOXX.

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BogleFanGal
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Re: TD Ameritrade Money Market Options

Post by BogleFanGal » Sun Mar 10, 2019 12:55 pm

Thanks for the quick response, snowman.
"Life would be infinitely happier if we could only be born at the age of eighty and gradually approach eighteen." Mark Twain

milosz19
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Re: TD Ameritrade Money Market Options

Post by milosz19 » Wed Mar 13, 2019 12:26 pm

I just finished speaking with a mutual fund expert at TDA. I was told that neither PVOXX nor PCOXX feature a holding period. So technically, you can sell shares after owning them for just a day. PVOXX is slightly better as it is typically not available for individual investors.

Droptoptop
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Re: TD Ameritrade Money Market Options

Post by Droptoptop » Wed Mar 13, 2019 9:56 pm

I thought I'd give an update since my last post in February as I see there's still some confusion:

-PTTXX is indeed available as a cash sweep option for natural person accounts, and it is currently the highest yielding cash sweep option at TD Ameritrade. I enrolled 2 personal accounts in it over the last few weeks.

-PTTXX is not available for non natural person accounts such as LLPs, LLCs, and Trusts due to the money market reforms of 2016. GORXX is the highest yielding available cash sweep option for non natural person accounts. I enrolled 3 entity accounts in it over the last few weeks.

-Note however that you need at least one PCS account (>$1mln in assets) to be eligible for the above. So in my case, I have one LLLP account that is under PCS as it is >$1mln in assets. The rep was able to instantly get that enrolled in GORXX. However, to get my personal accounts (which each have less than $1mln in assets) enrolled in PTTXX, the rep had to put in a request for an exception and point to my entity PCS account to justify it.

-PCOXX and PVOXX are both available as no minimum purchase, no transaction fee, no load, no minimum hold period money market funds at TD Ameritrade. They are NOT available as cash sweep options. I have verified this info through actual buys and sells in multiple of my accounts over the past few weeks, and even though on the buy and sell screen, you will see a warning about a minimum hold period fee of $49.99, this will not be charged. One, caveat is that one of my accounts is a holdover from ThinkOrSwim and I was charged a $17 misc fee upon selling PCOXX. I called TDA and they refunded the fee, and since then I've traded PCOXX again in the same account without the fee being charged. This $17 fee was just a systems error that has to do with TDA buying ThinkorSwim and not fully updating the old ThinkorSwim fee structure to the new TDA fee structure. So just review your trade confirmations the first few times you trade these funds to make sure you're not accidentally being charged a fee. Yes, you can buy $100 of PVOXX or PCOXX and sell it the next day for free. I've done this. Note that, reps do not necessarily know this. I called 3 or 4 times and got a different answer each time. One rep gave me the above info, another rep said the minimum hold period fee is only waived for PCS clients, and a third rep said the minimum hold period fee applies no matter whether you are PCS or not. So for whatever reason, TD Ameritrade has not given their reps clear info on this. But the first rep appears to be right as I've verified it through actual multiple trades in and out over the past few weeks in BOTH PCS and non PCS accounts with no fees, so it appears you do not need to have any PCS accounts to trade PCOXX or PVOXX for free.

-The difference between PVOXX and PCOXX is that PCOXX is only allowed to be purchased by natural person accounts as it has a fixed NAV. This is due to the money market reforms of 2016. See my post here for more info and the tax implications of buying and selling a floating NAV mm fund: viewtopic.php?f=10&t=273853 PVOXX is a floating NAV money market fund, so it's NAV will fluctate slightly around $1. Since 2016, when it switched from fixed to floating due to the regulatory change, it has had an all time low of 0.9998 and an all time high of $1.0004. So while you do get a higher yield than PCOXX, you will also bear a tiny amount of price risk plus the small amount of additional tax work.

-When you look up the price of PVOXX, many quote websites haven't updated their system to show the 4 decimal places for floating rate NAV money market funds, so you will falsely think its value is $1. For example Morningstar is currently showing a price of $1.00 even though the actual current price is $1.0003: https://www.morningstar.com/funds/XNAS/ ... quote.html You can see the actual price history to 4 decimal places here under Performance>>>View Historical Prices: https://www.federatedinvestors.com/prod ... ions/is.do.

-TD Ameritrade's systems haven't been completed updated either. Their trading systems are correct so when you buy and sell PVOXX you will transact at the correct floating rate NAV, but on your Balances and Positions tab, the decimal place will be cut off, and it will show a lower value than what you actually have. For example, I bought PVOXX the other day at $1.0003, and it is still at $1.0003, but the Positions tab and TDA's quote system shows it at $1.00, so in my Positions and Balances screen, I am incorrectly showing a small MTM loss. I contacted TDA and they are aware of this issue and awaiting their programmers to fix it.

As you might guess, I spent hours figuring all of the above out, so I hope it saves you guys some time!

neilpilot
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Re: TD Ameritrade Money Market Options

Post by neilpilot » Fri Mar 15, 2019 6:46 pm

Droptoptop wrote:
Wed Mar 13, 2019 9:56 pm
I thought I'd give an update since my last post in February as I see there's still some confusion:

-PTTXX is indeed available as a cash sweep option for natural person accounts, and it is currently the highest yielding cash sweep option at TD Ameritrade. I enrolled 2 personal accounts in it over the last few weeks.

-PTTXX is not available for non natural person accounts such as LLPs, LLCs, and Trusts due to the money market reforms of 2016. GORXX is the highest yielding available cash sweep option for non natural person accounts. I enrolled 3 entity accounts in it over the last few weeks.
One minor correction. A trust can be set up for a PTTXX sweep so long as it shares a natural person’s tax status. It was easy to set this up for our revocable trust by providing a simple note to the effect that our trust did not have it’s own EIN#, but was referenced by one of the trustee’s SSN.

Bobby206
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Re: TD Ameritrade Money Market Options

Post by Bobby206 » Mon Mar 18, 2019 3:43 pm

Great thread. Thanks for the updates!

btenny
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Re: TD Ameritrade Money Market Options

Post by btenny » Mon Mar 18, 2019 4:50 pm

Drop. When I did my digging the Rep I talked to said a lot of this is very new and driven by all the old Scottrade people like me who wanted better MM rates. So TDA went and found better choices but then were thinking about limiting who could be involved. He thought new customers would not get the good choices. But he said a lot of this is still getting worked out so the features and trade limits and costs are still somewhat fluid.

How do you see the stop trading risk issues that might occur with these MMFs? I had money in places that got locked up in 2008-9 and ever since have been gun shy of funds that claim they pay good rates but are backed by all kinds of corporate trades and funny notes. I know the rates these MMF are paying is better than treasuries and more stable price wise so there has to be trade offs in risk...

I also know BIL is being used and gamed by the fast traders so its price goes up the closer it gets to TBill auction dates. So are these MMFs subject to this same arbitrage by the high speed traders?

Good Luck.

Droptoptop
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Re: TD Ameritrade Money Market Options

Post by Droptoptop » Thu Mar 21, 2019 10:09 pm

I didn't experience that in 2008 so can you elaborate? Which funds were you in and how long was your money locked up? I believe the Reserve MM fund is the only one that broke the buck then though. I'm not too worried about the risk of these "prime" money market funds. They're all in AAA rated securities, with ultra short maturity dates, and if the stock market starts to crater, just move your cash into a government securities only MM fund as a preemptive measure. Maybe I'm being naive, but I think you're better off worrying about the risk in your stock, bond, other investment allocations rather than your money market fund.

I'm not aware that BIL is being gamed by high frequency traders. Do you have a source for this? As I googled it and didn't find anything. BIL's price moves up as it gets closer to its ex-dividend date, which is normal for any dividend paying stock. Are you sure you're not mistaking this for "high frequency traders gaming it"?

I don't see how money market mutual funds could be gamed by high frequency traders since mutual funds only trade once a day at the close.

RIMDBogle
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Re: TD Ameritrade Money Market Options

Post by RIMDBogle » Mon Mar 25, 2019 2:44 pm

Thanks for your replies.

I did work with TDA folks and finally they agreed to offer PTTXX as alternate sweep equivalent to my account. I did ask them to consider PVOXX or PCOXX (has better yield than PTTXX), but TDA declined.

What is the stability for PTTXX comparing with other MM vehicle?

What is the situation make PTTXX loose value ?

Thanks for sharing.

btenny
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Re: TD Ameritrade Money Market Options

Post by btenny » Mon Mar 25, 2019 4:25 pm

In 2008 I owned some Pimco Closed End municipal bond funds. These are leveraged bonds funds that pay above market rates by using leverage to boost bond ownership to 120% or so of face value. These are very good funds that have been around for decades and work great for small investors if bought at discount and held until the discount improves. The funds create the leverage by selling short term (28 day) "preferred shares". Back then they used an auction called AMPS to sell these preferred shares. This auction failed repeatedly in 2008. See the story below. This cascaded through the market and stopped many of the CEF funds from paying dividends for almost a year as I recall. Plus the holders of those preferred shares had their cash locked up. They thought they owned 28 day paper but ended up holding it for 10-12 months. A lot of this paper was in money market funds and was rated AAA. There was not a default but the money was locked up. I am not sure of the exact details but is was part of the money market problem. So ever since I have been very careful with my cash and bonds funds.

https://www.ici.org/pdf/fm-v18n4.pdf

Diligent Hands
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Re: TD Ameritrade Money Market Options

Post by Diligent Hands » Tue Mar 26, 2019 12:30 am

Consistent with the experience of others, I was able to have PTTXX set up as my sweep account. Very easy phone call. I asked about PCOXX, but was told that was not available for sweep accounts.

RIMDBogle
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Re: TD Ameritrade Money Market Options

Post by RIMDBogle » Wed Mar 27, 2019 2:44 pm

Thanks for your replies. I find many folks got PTTXX as sweep vehicle (including me!).

What is the reason TDA limiting to PTTXX as sweep vehicle?

I did not see any toggle options to other same family of PTTXX under sweep option.

Thanks for sharing.

dszklarek
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Re: TD Ameritrade Money Market Options

Post by dszklarek » Thu Jul 11, 2019 8:42 am

Droptoptop wrote:
Wed Mar 13, 2019 9:56 pm

-When you look up the price of PVOXX, many quote websites haven't updated their system to show the 4 decimal places for floating rate NAV money market funds, so you will falsely think its value is $1. For example Morningstar is currently showing a price of $1.00 even though the actual current price is $1.0003: https://www.morningstar.com/funds/XNAS/ ... quote.html You can see the actual price history to 4 decimal places here under Performance>>>View Historical Prices: https://www.federatedinvestors.com/prod ... ions/is.do.

-TD Ameritrade's systems haven't been completed updated either. Their trading systems are correct so when you buy and sell PVOXX you will transact at the correct floating rate NAV, but on your Balances and Positions tab, the decimal place will be cut off, and it will show a lower value than what you actually have. For example, I bought PVOXX the other day at $1.0003, and it is still at $1.0003, but the Positions tab and TDA's quote system shows it at $1.00, so in my Positions and Balances screen, I am incorrectly showing a small MTM loss. I contacted TDA and they are aware of this issue and awaiting their programmers to fix it.

As you might guess, I spent hours figuring all of the above out, so I hope it saves you guys some time!
Wish I had looked at this post before buying PVOXX. Looks like this has still not been fixed. I show a loss of $70 right after purchase. I have not sold to check what price I would get, but everything I look at still shows 1.00 other than my purchase confirmation. You are saying I would get 1.003 when selling and that my current balance is off by $70?

Seems like an easy fix for such a large company. I have more cash I wanted to put into it, but have been looking for better option when I saw your post. My guy who handles my account has been clueless about it all.

Thanks for your legwork

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market timer
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Re: TD Ameritrade Money Market Options

Post by market timer » Mon Sep 16, 2019 7:47 pm

I just received an email from TD Ameritrade saying they are "simplifying" their list of money market funds. Many of the funds mentioned on this thread will no longer available to new investors starting September 16. Do people see any implications for those of us currently invested in the funds? I use PCOXX as an informal sweep account, trading regularly with no transaction fees. My main concern is that they'll start charging $40/trade or whatever is the transaction fee for this type of fund.

David Althaus
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Re: TD Ameritrade Money Market Options

Post by David Althaus » Tue Sep 17, 2019 6:01 am

This is a continuing annoyance with TD. Look at one month CD. (It's what I default to). They carry a pretty good rate. If you need the money in less than 30 days it should probably be in fungible cash anyway.

All the best

FoolMeOnce
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Re: TD Ameritrade Money Market Options

Post by FoolMeOnce » Tue Sep 17, 2019 6:44 am

I have not received that notice (yet). Is PTTXX still available?

EDIT: as of this morning, 9/17, it appears I still have PTTXX as my cash sweep fund. Yielding a little under 1.7% annualized.
Last edited by FoolMeOnce on Tue Sep 17, 2019 10:12 am, edited 1 time in total.

Droptoptop
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Re: TD Ameritrade Money Market Options

Post by Droptoptop » Tue Sep 17, 2019 8:13 am

I got the email too. There's a link in the email too their new mutual fund just. PVOXX and PCOXX are on the new list so we should be good.

snowman
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Re: TD Ameritrade Money Market Options

Post by snowman » Tue Sep 17, 2019 9:14 am

Droptoptop wrote:
Tue Sep 17, 2019 8:13 am
I got the email too. There's a link in the email too their new mutual fund just. PVOXX and PCOXX are on the new list so we should be good.
Got the same email, and knew immediately what it means - PCOXX will not be on the list of new MMFs offered. It was really sneaky how they worded email - "The change will be effective after market close next Monday, September 16". Well, since they sent email on Monday 9-16, you would think that "next Monday" will be 9-23. Alternatively, this email should have come out on Monday 9-9 with effective date "next Monday" which would be 9-23.

So they basically sent it out after trading opened yesterday with the effective date of same day. Clearly, they did not want investors to make any changes whatsoever. Really, really sneaky. So I logged in this morning, and of course PCOXX is closed to new investors, exactly as I suspected. Not that big a deal for me as I only came for the bonus this year, and will leave next year, but will need to find out if trading in and out is still free.

Droptoptop
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Re: TD Ameritrade Money Market Options

Post by Droptoptop » Tue Sep 17, 2019 10:41 am

Hmm, when I checked the list just now, it seems you are right, I no longer see PCOXX or PVOXX on it. However, I still am able to place an order for PCOXX but per the email if you previously owned it you are grandfathered in. You said it's now closed to new investors, but how did you determine that? EDIT: I do see when you look up a quote for PCOXX it says closed to new investors near the top of the screen. Like you said, the question now is whether they continue to let us trade in and out for free.

If not, I do see these on the new list from Federated but they have lower yields because they are different share classes.

PRCXX Federated Prime Cash Obligations Fund Service Shares 1.89%
PVSXX Federated Institutional Prime Value Obligations Funds Service Shares 1.95%

The highest yielding fund on the list is

AJLXX JPMorgan Liquid Assets Money Market Fund Agency Class 2.10%

This is only 10bps lower than PVOXX. I haven't done research on it yet but if this turns out to be an equivalent replacement, I'm fine with the change. I only buy commission free ETFs with very low mgmt fees, and park all excess cash in MMFs so I think TD Ameritrade has been making very little money if any on my accounts when you consider all the services I get like free consolidated checking, free nationwide ATM use, free 1 day ACH transfers, free DRIP, and the few thousand in cash promotion they gave my family for moving all our 10 or 12 accounts there. If they need to charge a bit more I think I'm fine with that as they are still way ahead of most of their competition on cost and convenience.
Last edited by Droptoptop on Tue Sep 17, 2019 11:05 am, edited 1 time in total.

tj
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Re: TD Ameritrade Money Market Options

Post by tj » Tue Sep 17, 2019 10:50 am

Is there a web link to the new list?

snowman
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Re: TD Ameritrade Money Market Options

Post by snowman » Tue Sep 17, 2019 1:38 pm

tj wrote:
Tue Sep 17, 2019 10:50 am
Is there a web link to the new list?
Not that I know of, but I got there by following steps given in email:

To see a list of the funds that will be available for purchase, you can log in to your account starting next Monday after market close and go to Research & Ideas > Mutual Funds > Families > Money Market Funds.

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Re: TD Ameritrade Money Market Options

Post by Darth Xanadu » Tue Sep 17, 2019 2:12 pm

Droptoptop wrote:
Tue Sep 17, 2019 10:41 am
Like you said, the question now is whether they continue to let us trade in and out for free.
I initiated a trade in PCOXX after market close on Monday, Sep 16th, I suppose I'll see how it executes but I'm not expecting to have to pay a fee.
"A courageous teacher, failure is."

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Re: TD Ameritrade Money Market Options

Post by BlueOrange10 » Mon Sep 23, 2019 5:31 am

Anyone notice the repo rate shot up the same day TD Ameritrade changed their money market offerings. Coincidence? PVOXX's yield shot up 50% on that day. We could have made a lot of money if the Fed didn't intervene.

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Re: TD Ameritrade Money Market Options

Post by indexfundfan » Sun Oct 06, 2019 9:53 pm

Droptoptop wrote:
Wed Mar 13, 2019 9:56 pm
I thought I'd give an update since my last post in February as I see there's still some confusion:

-PTTXX is indeed available as a cash sweep option for natural person accounts, and it is currently the highest yielding cash sweep option at TD Ameritrade. I enrolled 2 personal accounts in it over the last few weeks.
Is PTTXX (or any other MMF) still allowed as a sweep MMF, assuming you qualify under PCS? I have read that there are some changes to the MMF list.

If a MMF can still be used as sweep, would the assets be automatically liquidated to satisfy ATM or checking debits in connection with their cash management services?

I am checking because I wonder if it might be worthwhile to move some of my assets to TDA.
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jiamajia
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Re: TD Ameritrade Money Market Options

Post by jiamajia » Fri Oct 25, 2019 4:06 pm

I want to know this as well, called in and asked a few CSRs, nobody has a clue of using PTTXX as sweep vehicle.

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Re: TD Ameritrade Money Market Options

Post by rasta » Sat Oct 26, 2019 12:30 am

if you call TD they should be able to tell you what funds you are able to use for your sweep and unless something has changed,
what is available is specific to your asset level.

at TD there are several MM funds which are are no-load, with no transaction fees, and no short-term redemption fees.
for instance you can buy PRCXX, same fund as PTTXX (service vs trust share class) with no fees and it also has a higher yield (+25bp)

you can also buy t-bills at auction with no fees from TD also.

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Re: TD Ameritrade Money Market Options

Post by mercurial_dirigible » Tue Oct 29, 2019 12:14 pm

Interesting to note - I just tried calling TD Ameritrade this morning and they claim to no longer offer flexibility of alternative cash sweep vehicles (PTTXX, etc.). My rep mentioned that the cash sweep process was expensive and with the latest interest rate drops they are no longer able to offer that service. Wonder if it may have also had something to do with the recent trade commission cuts and TD's stock price plunge...

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Re: TD Ameritrade Money Market Options

Post by neilpilot » Tue Oct 29, 2019 1:21 pm

mercurial_dirigible wrote:
Tue Oct 29, 2019 12:14 pm
Interesting to note - I just tried calling TD Ameritrade this morning and they claim to no longer offer flexibility of alternative cash sweep vehicles (PTTXX, etc.). My rep mentioned that the cash sweep process was expensive and with the latest interest rate drops they are no longer able to offer that service. Wonder if it may have also had something to do with the recent trade commission cuts and TD's stock price plunge...
I need to find out, with that change, if my PTTXX sweep is grandfathered. As of the end of last month, my sweep was still going into PTTXX.

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Re: TD Ameritrade Money Market Options

Post by stipeman » Tue Nov 19, 2019 2:27 am

I can confirm that money market sweep (PTTXX etc.) is no longer available to new PCS accounts. I was told by my local rep that I would get it when I started moving money over in July but unknown to him they had already discontinued it in June. I got nice transfer bonuses but talk about bait and switch!

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Re: TD Ameritrade Money Market Options

Post by peterzou » Sun Dec 01, 2019 1:28 pm

Yes, PTTXX is no longer availability. But AMTD emailed a link: mutual fund\family\money market funds\ to find a whole list of MM funds—no fee, no load, no short term redemption fee. Most are $1 minimum, except some JPM “agency class” funds requiring $1M minimum. The JPM agency class funds seem to have much less expense ratio than other funds: 0.25% vs. 0.45%.

My question is: even with no fee no redemption fee, MM funds is not replacement of sweep account, which runs automatically. Can we set up sweep account ourselves? The TD Ameritrade cash alternative is just alternative of zero!

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Re: TD Ameritrade Money Market Options

Post by ultraviolet » Mon Dec 02, 2019 8:13 am

I recently put some money in PVSXX. And the following day my $2000 was worth 1,999.40. So what happened to my .60? Was that some sort of management fee?

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Re: TD Ameritrade Money Market Options

Post by indexfundfan » Mon Dec 02, 2019 8:42 am

ultraviolet wrote:
Mon Dec 02, 2019 8:13 am
I recently put some money in PVSXX. And the following day my $2000 was worth 1,999.40. So what happened to my .60? Was that some sort of management fee?
I'm pretty sure it is due to the floating NAV of the MMF you selected. If the NAV is 1.0003, the you would have purchased 2000/1.0003 = 1999.40 shares. I think you are reading off the number of shares you have.

Use PJLXX if you don't want a floating NAV.
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Re: TD Ameritrade Money Market Options

Post by ultraviolet » Mon Dec 02, 2019 9:45 am

indexfundfan wrote:
Mon Dec 02, 2019 8:42 am
ultraviolet wrote:
Mon Dec 02, 2019 8:13 am
I recently put some money in PVSXX. And the following day my $2000 was worth 1,999.40. So what happened to my .60? Was that some sort of management fee?
I'm pretty sure it is due to the floating NAV of the MMF you selected. If the NAV is 1.0003, the you would have purchased 2000/1.0003 = 1999.40 shares. I think you are reading off the number of shares you have.

Use PJLXX if you don't want a floating NAV.
Thanks for the info. I noticed the NAV price was 1.0003 which I thought was weird. I'm definitely looking at the account balance though and it reads $1999.73 (recently got a $0.33 dividend). It should be $2000.33 unless it really did lose $0.60 in value since last week.

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Re: TD Ameritrade Money Market Options

Post by ultraviolet » Mon Dec 02, 2019 1:43 pm

It is the floating NAV according to TD (I called them to ask). So is it going to float the other way?

Is PJLXX not going to have this issue? Because according to the Rep, all MM Mutual funds have a floating NAV.

The choices on TD really aren't that great.

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Re: TD Ameritrade Money Market Options

Post by indexfundfan » Mon Dec 02, 2019 1:52 pm

ultraviolet wrote:
Mon Dec 02, 2019 1:43 pm
It is the floating NAV according to TD (I called them to ask). So is it going to float the other way?

Is PJLXX not going to have this issue? Because according to the Rep, all MM Mutual funds have a floating NAV.

The choices on TD really aren't that great.
Look at the fine print on the list of MMF provided by TDA.

For PVSXX, read the note [3] :

[3] You could lose money by investing in a money market fund. Because the share price of the fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

For PJLXX, read note [1] :

[1] You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Note the difference between the two, i.e. "the share price of the fund will fluctuate" for PVSXX.
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ultraviolet
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Re: TD Ameritrade Money Market Options

Post by ultraviolet » Mon Dec 02, 2019 2:12 pm

indexfundfan wrote:
Mon Dec 02, 2019 1:52 pm
ultraviolet wrote:
Mon Dec 02, 2019 1:43 pm
It is the floating NAV according to TD (I called them to ask). So is it going to float the other way?

Is PJLXX not going to have this issue? Because according to the Rep, all MM Mutual funds have a floating NAV.

The choices on TD really aren't that great.
Look at the fine print on the list of MMF provided by TDA.

For PVSXX, read the note [3] :

[3] You could lose money by investing in a money market fund. Because the share price of the fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

For PJLXX, read note [1] :

[1] You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Note the difference between the two, i.e. "the share price of the fund will fluctuate" for PVSXX.
I see that now. Thanks.

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Re: TD Ameritrade Money Market Options

Post by GiannaLuna » Tue Dec 03, 2019 4:37 pm

I've read this thread which spans nearly a year.

So, in summary (and please correct me if I am wrong) -

Unless you are an existing fund holder or hold a minimum of $500K in the MM, there are currently no worthwhile alternatives to the VMMXX fund to be found at Ameritrade?

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Re: TD Ameritrade Money Market Options

Post by rasta » Tue Dec 03, 2019 4:57 pm

vanguard has the best yielding money market funds mainly due to lower expense ratios.

there are money market mutual funds available at TD for a min invest of $1
with no-load, no transaction fees or short-term redemption fees.

some examples are:
GOSXX, GVVXX, TISXX, TOSXX, TPVXX, TRVXX.

you cannot use these as your settlement fund, but you can sell them and the funds are available same day to trade.

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Re: TD Ameritrade Money Market Options

Post by indexfundfan » Tue Dec 03, 2019 7:12 pm

GiannaLuna wrote:
Tue Dec 03, 2019 4:37 pm
I've read this thread which spans nearly a year.

So, in summary (and please correct me if I am wrong) -

Unless you are an existing fund holder or hold a minimum of $500K in the MM, there are currently no worthwhile alternatives to the VMMXX fund to be found at Ameritrade?
The closest alternative, in this scenario, to VMMXX (non-sweep fund) at TDA is probably PJLXX (JPMorgan Liquid Assets Money Market Fund Premier Class). The 7-day SEC yield as of 12/2/19 are

VMMXX 1.73%
PJLXX 1.47%

Interestingly, I was able to transfer PVOXX (Federated Institutional Prime Value Obligations Fund Institutional Shares) which I was holding at Merrill Edge to TDA. It's 7-day SEC yield as of 12/2/19 is 1.77%. This fund does have a floating NAV which is used for transacting. I hold it in the IRA so it does not bother me.
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