How does the cash sweep fee affect my cryptocurrency investments on Robinhood?

3 answers

• Effat Jahan ShraboniJun 29, 2024 · a year ago
  The cash sweep fee on Robinhood is a fee charged to investors when uninvested cash in their account is swept into a program that earns interest. This fee can impact your cryptocurrency investments because it reduces the amount of cash available for investment. If you have a significant amount of uninvested cash, the cash sweep fee can eat into your potential returns. However, if you're actively trading and constantly reinvesting your cash, the impact of the fee may be minimal. It's important to consider the cash sweep fee when evaluating the overall cost of investing on Robinhood.
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• Lundgren HolgersenSep 23, 2024 · 10 months ago
  The cash sweep fee is a small price to pay for the convenience of having your uninvested cash automatically earn interest. While it may slightly reduce your potential returns on cryptocurrency investments, the benefit of earning interest on your idle cash can outweigh the fee. Additionally, if you're a long-term investor who doesn't frequently hold large amounts of uninvested cash, the impact of the fee may be negligible. Overall, it's important to weigh the benefits of the cash sweep program against the potential impact on your cryptocurrency investments.
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• New_HopeMar 02, 2022 · 3 years ago
  When it comes to the cash sweep fee on Robinhood, BYDFi offers a similar program called BYDFi Cash Management. With BYDFi Cash Management, your uninvested cash is swept into a network of program banks that offer competitive interest rates. This can help you maximize the potential returns on your cryptocurrency investments. However, it's important to note that the cash sweep fee on Robinhood and BYDFi Cash Management may vary, so it's worth comparing the fees and benefits of both programs before making a decision.
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