Cash Sweep Options at Firstrade
At Firstrade, there are different ways to earn interest on cash that isn’t invested. One popular option is to join Firstrade’s cash sweep program.
The FDIC-Insured Cash Sweep Program is run by Firstrade’s clearing firm, Apex Clearing. Eligible customers can earn interest on their uninvested cash without needing to move money to a separate bank account.
Read on for more information.
How to Sign Up for (or Cancel) Firstrade Cash Sweep
Signing up for Firstrade’s FDIC sweep program is easy, but you can’t do it from the Firstrade website.
Instead, you have to make your request by email to customer service. The easiest way is to use the internal mail system on Firstrade’s site.
The contact form fills in your information and email address for you. Just choose a topic and write your request. In this case, you would ask to sign up for or cancel FDIC Cash Sweep for your account.
Firstrade Cash Sweep Rates
Firstrade pays 0.15% interest on cash moved into
partner banks. The broker does not use a tiered pricing schedule, so everyone gets the same APY on
their cash, no matter their account size.
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Is Cash Sweep Safe?
Firstrade’s cash sweep program is safe. Since money is put in established banks, any cash in the sweep program is FDIC insured.
The Federal Deposit Insurance Corporation (FDIC) covers up to $250,000 per bank in the program. Apex Clearing works with twenty banks for its FDIC-Insured Sweep Program.
If you don’t want your money put in certain partner banks, you can exclude any of them by sending a request through Firstrade’s message tool.
Withdrawals and Cash Sweep
Taking money out of partner banks is easier than you might think. When your cash goes into Apex Clearing’s partner banks, it happens behind the scenes. Your account balance does not show any difference, and the sweep does not stop you from investing or withdrawing money.
So, your account balance works the same way when you join Firstrade’s cash sweep program.
Firstrade Cash Management Account
Besides the FDIC-Insured Cash Sweep Program, fixed income investments, and mutual funds, Firstrade also has a cash management feature. Cash management is not the same as the cash sweep.
Cash management is added to the same brokerage account where the cash sweep program is set up. Cash management does not pay extra interest on money that isn’t invested, but it does let you spend or withdraw your funds using a VISA debit card, adding more convenience to your account.
To get cash management, go to ‘Accounts’ and then ‘Profile.’ The option only shows up if you have at least $25,000 (the minimum for Cash Management) in your account.
Updated on 11/1/2025.
I work in investment analytics and have been investing in the market since I was in high school. I enjoy anything that involves lots of strategy (i.e. a good game of chess), which is why I was naturally drawn to investing and researching companies. Outside of investing, I’m a big fan of the outdoors. In summer, you’re most likely to find me kayaking, camping, and hiking in the mountains.
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