Big brokerage firms are once again skirting their fiduciary obligations to their clients so that they can skim additional profits from client accounts. I don’t have a problem with profit, but the brokerage firms are knowningly replacing higher yielding money market accounts with lower yielding bank deposit funds that allow the firm to them use those funds to lend out money, thereby generating additional profits – at the expense of the customer.
Now you know why the brokerage firms fought tooth and nail to not be called fiduciaries and be held to the same standards of accountability as independent fiduciary based advisors.
I hope the pending merger of TD Waterhouse and Ameritrade will not bring “bank deposits” to Ameritrade. If they do we will find another place for money market funds.
Scott Dauenhauer, CFP, MSFP