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@yogibearbull : I paid fee of $6 for 26 week t bill purchase @ Schwab. Type of purchase stated margin , where as recent purchase of a CD stated cash. I had a short text chat with rep & they couldn't figure out the margin (TOP) as account had a few K left in it. Do you have an inkling as to why this T bill purchase was stated as margin purchase ?
Hi sir Derf -not sure about ust bonds but Corp bonds usually 5 or 10 bucks transactions fee without margin fees per 5k 10k I think w vanguard or schwab (margin fees usually calculate at end of month)
For us they put it the final product/amounts after closure into margin acct to close the deals (before settlement date) unless you have more cash in account than the actual bonds + commissions + forcasted partial divs paid before actual divs date
From vanguard*** A separate commission is charged for each security bought or sold. Orders that execute over multiple days are charged separate commissions. In addition, a separate commission is charged for each order placed for the same security on the same side of the market (buying or selling) on the same day. Orders that are changed by the client and executed in multiple trades on the same day are charged separate commissions. These commission and fee schedules are subject to change.***
This happens when you sold some stock/ETF but the cash isn't available until T+2. The position screen may show the credit immediately but the amount isn't really available yet (and in your case, on the morning of the day of T-Bill auction).
A foolproof way is to check the Balance screen and check the amount "available to withdraw" - that is the true cash available. On the other hand, "cash available to trade" can be a bit vague as it may or may not involve margin. Fido has a line for "cash available to trade without margin impact".
I have gotten burned in this at both Fido and Schwab as this T+2 settlement detail can be easily overlooked on active market days. I am surprised that Schwab rep couldn't explain this.
This happens when you sold some stock/ETF but the cash isn't available until T+2. The position screen may show the credit immediately but the amount isn't really available yet (and in your case, on the morning of the day of T-Bill auction).
A foolproof way is to check the Balance screen and check the amount "available to withdraw" - that is the true cash available. On the other hand, "cash available to trade" can be a bit vague as it may or may not involve margin. Fido has a line for "cash available to trade without margin impact".
I have gotten burned in this at both Fido and Schwab as this T+2 settlement detail can be easily overlooked on active market days. I am surprised that Schwab rep couldn't explain this.
Just had this issue at Schwab. They removed the margin charge. They REALLY need to be clearer on what available balance means in this context.
Not the answer in my case as both ATW & ATT show the same amount. @wxman123 : Could you inform me as to when this margin charge showed up ? I see $6 fee, that's all. Also T+2 didn't take place.
Talking about margin ML Worst everyone so confused Even my advisor ML could not figure out how much I owe in my margin acct, reps at ML are worthless only want you to enroll and buy their recommended funds
Not the answer in my case as both ATW & ATT show the same amount. @wxman123 : Could you inform me as to when this margin charge showed up ? I see $6 fee, that's all. Also T+2 didn't take place.
Not the answer in my case as both ATW & ATT show the same amount. @wxman123 : Could you inform me as to when this margin charge showed up ? I see $6 fee, that's all. Also T+2 didn't take place.
Basically the margin was caused by selling an etf and buying a mutual fund (or vice versa, don't recall) and the clearing time for each was different. I saw the margin charge in a quicken update a few days later.
@wxman123 : thanks for reply. I checked account last night & saw, or so it appears, margin was removed. Heck I don't even have a margin account or agreement with Schwab.
Yesterday I sold BAC and JPM, and will be buying either BX or MS. I also sold RPMGX (tax loss) and will be buying FSMEX. Problem is, I'm just not sure WHEN I'll be making those purchases. I think we're in for a really bumpy ride so cash is good.
Small buys of ICLN and TAN, put in orders for 13 wk and 26 wk T-bills for Monday's auction. Conservative port = 10% risk assets, 30% hold-to-maturity short maturity T's and business promissory notes, 60% cash (FZDXX 2.30%, SPAXX 2.01%).
Hi @AndyJ As FZDXX isn't a default fund for a core cash account at Fidelity, and assuming your current core cash account is SPAXX; you used monies from SPAXX to purchase FZDXX, yes? I will presume when you choose to move monies from FZDXX in the future, to purchase an equity investment(s), the transaction would not be different as if the purchase came from SPAXX, with the EXCEPTION; that FZDXX must maintain the minimum $100,000 balance. Appears that Fidelity may close the FZDXX position if the minimum balance is not held. Am I correct with this assumption? TAN (solar) is holding quite well with consideration of the massive trampling taking place in the markets. We will maintain our position with this, too. Thank you. Remain curious, Catch
coffee tastes good this morning. i'm sure my portfolio won't. investing when there's blood in the streets requires little round body parts made of BRASS.
I have FZDXX. It dips below $100k when Fido withdraws funds to settle my other (buy) trades. I rebuy into FZDXX even when the balance is below the initial minimum of $100k.
Good move for short-term cash. In my opinion, the 26-week T-Bill is currently in the "sweet spot" of the yield curve. Select rates from the Dept. of Treasury website for 09/23:
Comments
I had a short text chat with rep & they couldn't figure out the margin (TOP) as account had a few K left in it.
Do you have an inkling as to why this T bill purchase was stated as margin purchase ?
Thanks yogi, Derf
For us they put it the final product/amounts after closure into margin acct to close the deals (before settlement date) unless you have more cash in account than the actual bonds + commissions + forcasted partial divs paid before actual divs date
From vanguard***
A separate commission is charged for each security bought or sold. Orders that execute over multiple days are charged separate commissions. In addition, a separate commission is charged for each order placed for the same security on the same side of the market (buying or selling) on the same day. Orders that are changed by the client and executed in multiple trades on the same day are charged separate commissions. These commission and fee schedules are subject to change.***
Buying on Margin
A foolproof way is to check the Balance screen and check the amount "available to withdraw" - that is the true cash available. On the other hand, "cash available to trade" can be a bit vague as it may or may not involve margin. Fido has a line for "cash available to trade without margin impact".
I have gotten burned in this at both Fido and Schwab as this T+2 settlement detail can be easily overlooked on active market days. I am surprised that Schwab rep couldn't explain this.
Also T+2 didn't take place.
ML Worst everyone so confused
Even my advisor ML could not figure out how much I owe in my margin acct, reps at ML are worthless only want you to enroll and buy their recommended funds
I added little tsla asml spy
No more cash
Sold couple bonds positions
As FZDXX isn't a default fund for a core cash account at Fidelity, and assuming your current core cash account is SPAXX; you used monies from SPAXX to purchase FZDXX, yes? I will presume when you choose to move monies from FZDXX in the future, to purchase an equity investment(s), the transaction would not be different as if the purchase came from SPAXX, with the EXCEPTION; that FZDXX must maintain the minimum $100,000 balance. Appears that Fidelity may close the FZDXX position if the minimum balance is not held. Am I correct with this assumption?
TAN (solar) is holding quite well with consideration of the massive trampling taking place in the markets. We will maintain our position with this, too.
Thank you.
Remain curious,
Catch
In my opinion, the 26-week T-Bill is currently in the "sweet spot" of the yield curve.
Select rates from the Dept. of Treasury website for 09/23:
1 mo. - 2.67%
3 mo. - 3.24%
6 mo. - 3.85%
1 yr. - 4.15%
2 yr. - 4.20%
3 yr. - 4.21%
5 yr. - 3.96%
10 yr. - 3.69%
https://tipswatch.com/2022/09/21/short-term-treasurys-even-more-attractive-now/
To keep up with this inflation, I will pick up more 5 yr TIPs when the auction comes, October 13, 2022.
I am still watching sidelines... Place couple leap calls amsl spy amd today