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Non-Tech : Datek Brokerage $9.95 a trade
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To: Dan Swartzendruber who wrote (10445)11/25/1998 8:45:00 PM
From: Esteban  Read Replies (1) of 16892
 
If the cash is automatically swept into a money market account, the security should be very good. Mutual funds are not insured, but the money market fund would not be affected by the default of a broker. Just like one's stock holdings would not be affected in the same event, other than temporary inaccessibility. It's the outright cash that the broker pays interest on, like Datek does, that would be at risk and would be covered by SPIC insurance.

At least that's my underinformed understanding. Anybody who actually knows the ins and outs of these security concerns, please jump in.
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