In my stock account (TDAmeritrade if it matters), there are many transactions with description "MONEY MARKET PURCHASE", "MONEY MARKET REDEMPTION", "MONEY MARKET REDEMPTION (MMDA1)". What are they? Also, strangely some of them have amount as '0.00' or '0.01'. Why the (nearly) nil amount?
In your transaction history, you may notice entries that show a money market purchase or redemption. These transactions appear whenever there is an automatic cash sweep into or out of your sweep vehicle. There is no fee to move money to or from your sweep account. For more information about how the sweep program works. View my account history.
The cash sweep program is automatic. You may notice a credit or debit in your cash or margin balance immediately following a trade, deposit, or withdrawal. Upon settlement of the transaction, cash will sweep to or from your cash sweep vehicle, such as the Insured Deposit Account (IDA), with no action required by you. Sales proceeds and deposits will sweep from your cash or margin balance into your sweep vehicle. When you make a purchase or withdrawal, funds will sweep from your sweep vehicle to the cash or margin balance.
Money markets are dividend-earning investments and are often called sweep accounts. Uninvested cash in your account "sweeps" automatically into the money market. The same process occurs in reverse when you need funds from the money market for a purchase or withdrawal. There is no fee to move money into or out of the sweep account. Change cash sweep
On this page, you can find information about your current cash sweep vehicle and see if others are available for your account. Click the "Change cash sweep vehicle" button to make changes. You can also call a Client Services representative at 800-669-3900 for further assistance. Change cash sweep