A sweep account is an interest-bearing account for any excess cash from your brokerage account beyond a certain level. An automatic sweep of the cash into your sweep account occurs daily, earning you interest. When you are ready to use this cash for trading or for cash management activities, the necessary cash is automatically pulled from the sweep account.
If your Kapitall Generation brokerage account contains $500.00 or more in cash that is not invested, these funds are automatically "sweeped" into a Money Fund. This allows customers the ability for their unused cash to accumulate interest, similarly to a money-market fund. The Money Fund is simply a way to help customers gain interest on un-invested cash and is an industry standard.