TD Ameritrade 300

2022 Wells Fargo Cash Sweep Acoount Options. Wellstrade Money Market Fund Interest Rates


Wellstrade uninvested cash sweep account options (FDIC bank, money market fund) vehicle choice. Wells Fargo brokerage\IRA account APY interest rates and insurance.



Wellstrade Cash Sweep Account Options


Non-retirement brokerage accounts at WellsTrade have just one option for free cash balances. The firm manages an FDIC-insured bank sweep program that protects uninvested cash up to $1,000,000. This is four times the government’s normal level of insurance. WellsTrade is able to do this by moving free cash balances to four separate program banks.


The current interest rate for uninvested cash is 0.01% for balances below $50,000. The APY is 0.01% for balances above $10,000,000.


Wellstrade Money Market Fund Rates


Some accounts are ineligible for the default cash sweep program. These accounts include insurance companies, government accounts, credit unions, and banks. These institutional accounts have cash swept into a money market fund. It is the Wells Fargo 100% Treasury Money Market Fund, which has a 0.01% APY.


Comparison


Majority of brokerage firms offer very low interest on investors' uninvested cash. TD Ameritrade's cash sweep rates, for example, are 0.01%.

Ally Invest offers the highest in the industry rate of 0.6% APY on its online savings account that could easily be linked to its brokerage account.

M1 Finance offers a checking account that comes with 1.3% APY. However, that checking is part of the broker's M1 Plus program which costs $125 a year.


Other Wellstrade Cash Sweep Options


Checkwriting does not come standard with a WellsTrade account, and neither does a debit card. These services can be added, although there is an annual $100 fee. One way around this overpriced policy is to open a checking or savings account with WellsTrade’s parent company, Wells Fargo. A bank account is automatically linked to a brokerage account, so moving funds is quick and easy after logging into the WellsTrade site.

One bank account Wells Fargo offers is the Wells Fargo Preferred Checking account. It comes with a $15 monthly fee, which can be waived with a direct deposit of at least $1,000, or a balance of $10,000 or more. The account pays no interest on balances below $500, and just 0.01% on all funds above that level.

For this account, ATM withdrawals at Wells Fargo machines are free of charge. The bank charges nothing for using a non-Wells Fargo ATM one time per month. Each additional withdrawal costs $2.50. This fee is in addition to any fees charged by the ATM owner. The checking account does not reimburse ATM surcharges.

Compared to other brokerage firms, WellsTrade provides below average cash management services. Fidelity customers, for example, receive unlimited ATM reimbursements. E*Trade customers have three choices for uninvested cash, rather than just one option. Merrill Edge only charges 2% for foreign transactions, rather than WellsTrade’s three percent.


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Wellstrade Cash Sweep Summary


Most brokers don’t charge $100 for checks and a debit card. In fact, many firms today provide them for free. Schwab and TD Ameritrade clients pay nothing for these important cash management tools.


WellsTrade Website


Wells Fargo brokerage offers good selection of independent, third party investment research and education resources: market commentaries, profiles, S&P Stock Reports, and Morningstar® mutual fund ratings. Charting features are less comprehensive than in most other brokerages. The gain/loss information on the positions screen is not updated right away.


Wells Fargo brokerage review


Advanced Trading Platform


Unlike many of its competitors, Wells Fargo brokerage service is not offering an advanced, sophisticated trading platform. Overall, WellsTrade trading tools are disappointing.


Mobile Trading


Wells Fargo created a good app for both iPhone and Android that brings access to its banking and investment services to mobile devices. Investment part of the app is not very sophisticated but it allows users to place trades and track orders, manage watchlists, get real-time quotes, view account activity, and access market news and data.





About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for Brokerage-Review.com, Chad can usually be found managing his portfolio or building a new home computer.