There's multiple ways that Fidelity makes money (but all are fee based): Fees if you trade through them. If you invest in their mutual funds, they will charge a fee (usually around 2% of assets, but this can vary) To close your IRA, they charge a fee. Charge interest on the debit value of the margin accounts.Are fidelity money market funds FDIC insured?
Yes, the cash balance in the Fidelity ® Cash Management Account is swept into an FDIC-insured interest-bearing account at one or more program banks. The deposit at the banks is eligible for FDIC insurance and subject to FDIC insurance coverage limits. Fidelity automatically performs all transfers between the program banks and your account.How does fidelity manage money market funds?
Fidelity manages money market funds for certain institutional investors that use a fluctuating NAV. Whether a money market fund is a stable or floating NAV fund, we will remain focused on the stability and safety of the fund's investments. Fidelity places a strong emphasis on managing its funds with sufficient liquidity.