I just found out a family member who owned stocks held at Schwab opened a money market and was writing checks versus his securities. He is a complete novice and has little knowledge of securities or of financing. Schwab has been charging him $1400/ month on margin interest. Over the last 10 years.. it's about 140,000 just in interest. He has always had enough stock to liquidate and pay out what he was taking out, but was verbally informed that he could not do that. As a result, he just allowed schwab to continue to charge him. this is a self directed account. Does schwab have a fiduciary responsibility in a self directed account? I believe this is taking advantage of someone who does not about financing.
so now he has 300k in stocks but is short 200k cash in money market fund.