Cash Sweep Options at Firstrade
At Firstrade, there are several ways to earn interest on uninvested funds. One popular solution is to opt into Firstrade’s cash sweep program.
The FDIC-Insured Cash Sweep Program is provided by Firstrade’s clearing firm, Apex Clearing. Eligible customers can earn interest on their uninvested cash without going through the trouble of moving funds to a bank account.
Keep reading for more information.
How to Sign Up for (or Cancel) Firstrade Cash Sweep
Signing up for Firstrade’s FDIC sweep program is quite easy, but you cannot enroll in the sweep program (or cancel it) from Firstrade’s website.
Instead, the broker handles FDIC sweep program requests via email. The easiest way to send an email to the customer service desk is to use the internal mail system on Firstrade’s website.
The system populates the contact form with your personal information and email address. So, all you need to do is select a topic and write your request. In this case, you would request to either sign up for or cancel FDIC Cash Sweep for your account.
Firstrade Cash Sweep Rates
Firstrade pays 0.15% interest on cash swept into
partner banks. The broker does not use a tiered pricing schedule for its cash sweep program. Investors
with accounts of all sizes have the same APY on their uninvested cash.
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Is Cash Sweep Safe?
Firstrade’s cash sweep program is safe. Since funds are deposited into established financial institutions, any cash involved with the program is insured by FDIC.
The Federal Deposit Insurance Corporation (FDIC) provides coverage of up to $250,000 per program bank. Apex Clearing is partnered with twenty banks for its FDIC-Insured Sweep Program.
If you do not want your funds swept into specific partner banks, you can exclude any of the banks on the list by sending a request to Firstrade through the system message tool.
Withdrawals and Cash Sweep
Withdrawing funds swept into partner banks is more straightforward than one might think. When your money is deposited into Firstrade’s (Apex Clearing’s) partner banks, it happens as a part of the ‘back of house’ operations. Your account balance doesn’t reflect any change, and the cash sweep program doesn’t restrict you from investing or withdrawing funds from your account.
In short, the usability of your account balance does not change when you enroll in Firstrade’s cash sweep program.
Firstrade Cash Management Account
In addition to Firstrade’s FDIC-Insured Cash Sweep Program, fixed income securities, and mutual funds, investors at Firstrade can also consider the cash management feature. Firstrade’s cash management should not be confused with cash sweep, however.
Cash management is added to the same brokerage account to which the cash sweep program is connected. As a result, ‘Cash Management’ doesn’t pay additional interest on uninvested capital. That said, the feature does allow you to spend or withdraw your funds with a VISA debit card, bringing added convenience to your account.
Cash management can be activated by going to ‘Accounts,’ then ‘Profile.’ The option is only visible to account holders with at least $25,000 (the account minimum for Cash Management) in their account.
Updated on 7/1/2025.
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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