Can I use the money in SPAXX
Summary:
- The user, PAW, is confused about having 0 buying power in their account despite having money previously, and is uncertain if the funds in SPAXX can be used.
- Fidelity explains that SPAXX is a money market mutual fund where uninvested cash sits until used for purchases or withdrawals.
- The funds in SPAXX are earning interest and can be utilized for transactions once the user decides to invest or withdraw.
- Fidelity provides links to resources for understanding core positions and account balances to help the user navigate their account better.
Here’s the full thread
I checked my account today and seen that I have 0 buying power but yesterday I had money in there and now there is money in the SPAXX. Is that money I can use? If so how do I use that money?
We appreciate you reaching out, @PAW.
The Fidelity Government Money Market Fund (SPAXX) is a money market mutual fund, often the default core position for Fidelity Brokerage accounts. If SPAXX is your core position, incoming funds will be deposited there and start earning interest once the funds post.
To elaborate, the core position is where uninvested cash sits until you use it to purchase securities or make withdrawals. You can learn more about the mechanics of a core position below.
What is a core position? (PDF): https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/mutual-funds/what-is-a-core-position.pdf
Understanding your account balances: https://www.fidelity.com/learning-center/tools-demos/trading-tools/nextgen-balances-video
If there is anything we can clarify or if additional questions pop up, please don’t hesitate to ask! We’re always happy to help. 🟢