I have been told by customer service that Schwab does not pay interest for sweep cash. So when you sell any financial instrument, you have to wait for settlement T+1 and next day you have to remember to buy into any money fund. Fidelity does not have this. In Fidelity cash is auotmatically earns interest in their sweep cash account. Here is another problem. If you want to buy option, you need to sell your money fund a day before so that it settles next day and that is when you can buy the option. Again Fidelity does not have this problem. You can buy your option same day because it already sits in your sweep cash account earning interest Recently I moved my ROTH IRA to Schwab because Fidelity did not approve option investing but Schwab did. But I did not realize these details beforehand. Any recommendation for a brokerage with high SIPC insurance and proceeds from sale automatically invested in interest earning cash sweep account so that I can invest in anything same day I want. For SIPC I know some brokerages go over the standard SIPC limit (500K) but I am not sure which ones offer the highest beyond 500K. Any recommendations?
Fidelity's option principal felt you were under-capitalized and protecting you from the biggest den of thieves, the CBOE.