Brokerage Stocks Poised to Gain from Higher Fed Rates

With inflation stuck at 3.4% and the Federal Reserve widely expected to lift rates again, idle client cash in brokerage accounts is no longer dead weight, it's earning power.

The increase in short-term yields can reshape how brokerages and custody platforms make money from these balances.

This article explores three stocks exposed to this policy shift: LPL Financial Holdings (LPLA), Charles Schwab (SCHW), and UP Fintech Holding (TIGR).

LPL Financial Holdings, a US-based brokerage and advisory platform for independent advisors, earns all of its $19.2 billion revenue from brokerage services and client cash programs.

Its market value is around $27.9 billion.