What is Cash Sweep

1. Cash Sweep

Cash Sweep is a program provided by Moomoo Canada that generates cash rebates from your idle cash. When you have idle cash in your securities account, it will be automatically invested in the program to generate rebates.

In order to join Cash Sweep, you must have a cash or margin account. After you join Cash Sweep, all of your accounts (cash, margin, TFSA, RRSP and SRRSP) cash balance will be calculated into a total cash balance and you can receive rebates from your idle cash at a fixed time.

Besides, joining the Cash Sweep program will not reduce your buying power, nor will it have any impact on your trading of securities. When you have a negative balance in your securities account, Cash Sweep will be automatically redeemed to cover the negative balance.

2. Join and exit the program

2.1 Join the program

To join the Cash Sweep program in the moomoo mobile app, please:

Go to the Accounts tab;
Tap any of your margin or cash account;
Tap the Up icon on the right of the Total Cash label, or tap the Cash Sweep entry below.

Note: Your cash balance and rebates are updated daily before 20:00 PM. To check your balance in the Cash Sweep program, please refer to the settled cash shown in your statement.

2.2 Exit the program

You can exit the Cash Sweep program at any time by entering the details page of Cash Sweep.

3. Balance calculation

Your total Cash Sweep balance is calculated by adding up your CAD cash and USD cash after converting the USD to CAD at a fixed exchange rate (1 USD = 1.31987578 CAD). Funds deposited between ET 14:00 on T-1 day to ET 14:00 on T day will be considered for cash rebate calculation on T day. The cash rebate earnings for such assets will be updated before 20:00 PM on T+1 day. The cash balance is subject to the cash settled in the latest statement.

Example: If your deposited funds have arrived and Cash Sweep is activated at 03:00 PM ET on January 5th, the rebate amount will start to be calculated from January 5th, and the cash rebate amount will be visible on the Cash Sweep details page before 20:00 PM ET on January 6th.

4. Rebate APY

Cash Sweep rebate is an exclusive benefit for Moomoo Engine memberships.

4.1 Moomoo Engine members

For Moomoo Engine members, the portion of eligible cash balance within 10,000 CAD can enjoy a 6.0% rebate p.a.; the portion of eligible cash balance exceeding 10,000 CAD does not enjoy a rebate. Eligible uninvested cash refers to the uninvested CAD and USD cash balances across all of your brokerage accounts, and does not include any margin loan balance.

Formula: Daily cash earnings = uninvested cash balance (up to $10,000 CAD) × 6%/365 + uninvested cash balance (portion above $10,000 CAD) × 0%/365

For example,

Client A has 2,000 CAD uninvested cash balances, the daily cash rebate = 2,000 x 6% / 365.
Client B has 12,000 CAD uninvested cash balances, the daily cash rebate = 10,000 x 6% / 365 + 2,000 x 0% / 365.

For new clients, once a moomoo Canada brokerage account has been opened, you will automatically be granted a 30-day free trial period of Moomoo Engine. Please refer to the promotion description for details.

4.2 Non-members

For non-members, or if your Moomoo Engine subscription is cancelled, terminated, or expires, the Cash Sweep rate on all uninvested cash will immediately revert to 0% upon the effective date of cancellation. No prorated interest will be paid for any partial period following the effective date of cancellation.

5. Rebate arrival

Cash Sweep rebates are paid in CAD. Rebates are calculated every calendar day and distributed on a weekly basis. They will arrive in your securities account each Monday (including non-trading days). In the event of the aforesaid delay, moomoo Canada will try the best to complete the cash rebate distribution within 3 business days. To check details, please go to moomoo app > Accounts > Cash Account / Margin Account > Cash Sweep > Daily Rebate.

Please note, although your idle cash could be from RRSP and TFSA accounts, only your cash or margin account can only receive rebates from your idle cash. Rebates will be distributed to your cash account by default, if you only have a margin account, then it will be distributed to your margin account. Currently it is not available to change the Cash Sweep rebate distribution account.

For example,

Client A has a cash account and joined Cash Sweep, Cash Sweep will calculate client A's cash account balance and client A will receive rebates in the cash account.
Client B has a cash account, RRSP account, TFSA account, and client B joined Cash Sweep under the cash account. Cash Sweep will calculate client B's account total cash balance = (cash balance in cash account + cash balance in RRSP account + cash balance in TFSA account) and client B will receive rebates from the account total cash balance in the cash account.