Re:Schwab Removes U.S. Stock, ETF and Options Commissions
by rellimevad on Wednesday October 02, 2019 @11:34PM
(#21143353)
>if you have insufficient funds they'll take out a margin loan
That's not my experience with them. I've had them as a checking/brokerage account for 10+ years. I tend not to keep much money in checking so I run into timing issues once a year or so - where a check I wrote will present before the funds to cover it arrive in my account. I've definitely had them pull from the brokerage cash, but not from savings. They have never opened a margin loan to cover it.
Re:Schwab Removes U.S. Stock, ETF and Options Commissions
by terinjokes on Thursday October 03, 2019 @02:06AM
(#21144179)
Also not my experience. Accidentally had a timing issue once, and was overdrawn for a week before an ACH more than covered the difference.
On day four they called me to make sure I was aware. I explained that I had already started a transfer several days earlier, and they said "no problem" and thanked me for being a customer.
No overdraft fees, no pulling from my brokerage account, no margin loan. Never heard anything about it ever again.
Re:Schwab Removes U.S. Stock, ETF and Options Commissions
by inferiorhuman on Thursday October 03, 2019 @04:13AM
(#21144767)
It's happened to me a couple times as I don't keep cash in my brokerage account. To cover the checking account, they'll pull from the brokerage account, and if there's insufficient cash in the brokerage account, they take a margin loan. vOv
They will pull from your brokerage account, if you have insufficient funds they'll take out a margin loan and I think the only fees there are interest.
ING did something similar where they'd only charge you interest for overdraft stuff.