[konne88]

1) You will usually pay short term capital gains tax every time you spend money. Note however that your taxes will only be a fraction of your gains, not your total assets. E.g. if you have $1,000 gains in a year and pay 35% short-term capital gains tax, you will make $650 post tax. If you have $0 gains, you will also pay $0 in tax.

You can configure which of your shares we will sell first. If you set this to Tax-Sensitive, we will sell shares with a low tax burden first, so if you have a greater inflow into your account than outflow, all the shares with a high tax burden will never be touched and they will eventually be classified as long-term capital gains.

2) Money market funds only allow you to invest in low risk/low reward securities. We allow you to invest a much broader set of securities (including bonds, stock, ETFs, etc).