What is your Fidelity Business Brokerage Account episode?

[RIMDBogle]

What is your Fidelity Business Brokerage Account episode?
===============================================

Thanks for replies to my posting.

After reviewing many threads here. I settled to open a Fidelity business account for cash management of my business.

It is not easy compare to opening an account with traditional bank for me.

There is no option to open Fidelity Business Account online. Each step is driven by filing paper form with pen signature. They are not accepting digital signatures/uploading a form.

They Asked many supporting docs that was not required for my other traditional bank accounts.

EFT and Check request need another set of paper/pen signature with many days of lead time.

I am surprised with this experience from strong digital presence entity like Fidelity.

They are not allowing to keep premium Money Market as Core position, but my other account hold premium Money Market as Core position.

How did you resolve these constraints with your Fidelity Business Accounts?


Thanks for sharing.

[LadyGeek]

This thread is now in the Investing - Theory, News & General forum (general discussion).

As a business owner, the OP's question is on-topic. Please see this post by the site owner: Re: cyber insurance (small business)

...Questions here are on topic as long as they are "directly connected to your (or your friend's or family's) financial life." For small business owners, all of their business financial issues are directly connected to their financial life.

[vaylie]

Do they really not allow you to enable EFT and checkwriting online after you've already opened your account? I was under the impression that only the initial account opening required paperwork. It definitely is a hassle. For Schwab, I was able to send paper applications via their secure mail, but for some reason, Fidelity requires you to either drop it off at a local office or to mail the documents.

[RIMDBogle]

Thanks for weighing in.

I am able to have FZDXX for my other personal accounts in Fidelity, but they are not allowing to have FZDXX as core position for my business account.

What are the alternative to FZDXX for better yield ?

Thanks for sharing/guidance.

[Lyrrad]

Thanks for weighing in.

I am able to have FZDXX for my other personal accounts in Fidelity, but they are not allowing to have FZDXX as core position for my business account.

What are the alternative to FZDXX for better yield ?

Thanks for sharing/guidance.

I guess there's restrictions on holding some money market funds for non-natural persons. Would government money market funds like SPAXX be allowed? I don't see that restriction on its fund page at Fidelity.

[HomeStretch]

I had a Fidelity Business account (recently closed).

The Fidelity Business account has investment options but limited cash management features (which the website and reps are opaque about). It’s a great way to earn investment income on business cash balances by using money market funds. It’s not a great business bank account due to limited cash management features.

The extra paperwork at opening is understandable as they need to verify the business (the account owner). Once established, you can add checkwriting by completing a simple one-page form (that accumulates signatures for all account checks signers) and uploading it. Checks and wires are free. You have to talk with customer service (CS) and be sent a debit card form which requires approval (not all are approved, mine was). There is no form for adding Bill Pay as it’s rarely granted per CS rep (my verbal request via CS was denied).

[RIMDBogle]

Thanks for weighing in.

I am able to have FZDXX for my other personal accounts in Fidelity, but they are not allowing to have FZDXX as core position for my business account.

What are the alternative to FZDXX for better yield ?

Thanks for sharing/guidance.

I guess there's restrictions on holding some money market funds for non-natural persons. Would government money market funds like SPAXX be allowed? I don't see that restriction on its fund page at Fidelity.

Thanks for weighing in.

I find government money market funds SPAXX is allowed . Fido website says 7-Day Yield (3.96%) , but prospectus says annual return 0.01%. It is confusing.

@HomeStretch

Could you explain about

imited cash management features (which the website and reps are opaque about).

What are the Cash management features lacking here ?

It’s a great way to earn investment income on business cash balances by using money market funds.

What are the money market funds you use here ?

Thanks for sharing.

[middleage77]

Happy weekend all, I just wanted to say that I opened a business brokerage at Fidelity a few months ago and do have a SPAXX as my core position

[HomeStretch]

The limited cash management features in my opinion were that issuing a atm/debit card requires approval and bill pay was almost never being granted. These are two standard features on business accounts offered by a bank if you want them. I also found the Fidelity online account activity limited (it only reflects the activity in the core account) and the statements cumbersome to wade through.

Fidelity is great for investments. But I find their CMA and Business accounts’ activity reporting and statements sub-par compared to a bank’s account statement and online account activity. But the trade-off can be worth it due to higher investment income and lower account costs (no account fees, free checks).

As far as a MMF, I tend to use FDLXX for the state tax-exempt income. It’s not a core account.

[chassis]

What is your Fidelity Business Brokerage Account episode?
===============================================

Thanks for replies to my posting.

After reviewing many threads here. I settled to open a Fidelity business account for cash management of my business.

It is not easy compare to opening an account with traditional bank for me.

There is no option to open Fidelity Business Account online. Each step is driven by filing paper form with pen signature. They are not accepting digital signatures/uploading a form.

They Asked many supporting docs that was not required for my other traditional bank accounts.

EFT and Check request need another set of paper/pen signature with many days of lead time.

I am surprised with this experience from strong digital presence entity like Fidelity.

They are not allowing to keep premium Money Market as Core position, but my other account hold premium Money Market as Core position.

How did you resolve these constraints with your Fidelity Business Accounts?


Thanks for sharing.

I have a business CMA account with Fidelity. Also surprised at the paper-driven process, but that is behind me now.

I sweep cash out of the business CMA and do not rely on it for yield. It’s simply an account for me to manage revenue, costs and tax filing/reporting.