Is Your Brokerage Safe?

Better Investing

What's Hot


How a Mexican Tariff Will Boost the Cost of 6 Common PurchasesFamily

Report: Walmart to Begin Selling CarsCars

How to Protect Yourself From the ‘Can You Hear Me?’ Phone ScamFamily

Trump Scraps FHA Rate Cut — What Does It Mean for You?Borrow

This Free Software Brings Old Laptops Back to LifeMore

10 Overlooked Expenses That Ruin Your BudgetFamily

Protecting Trump Will Cost Taxpayers $35 MillionFamily

8 Creative Ways to Clear ClutterAround The House

8 Tuition-Free U.S. CollegesCollege

Study: People Who Curse Are More HonestFamily

Tax Hacks 2017: Don’t Miss These 16 Often-Overlooked Tax BreaksTaxes

The 3 Golden Rules of Lending to Friends and FamilyBorrow

Porta-Potties for Presidential Inauguration Cause a StinkFamily

12 Surprising Ways to Wreck Your Credit ScoreBorrow

These Are the 25 Best Jobs in the U.S.Jobs & Work

With all the talk of banks going under, what about your stock brokerage? If it fails, is your money insured?

With all the talk of banks going under, what about your stock brokerage? If it fails, is your money insured?

As it turns out, brokerages are required to be members of the SIPC, or Security Investor Protection Corporation. It’s like the FDIC in a lot of ways, but unlike the FDIC, the SIPC is not backed by the federal government… it’s strictly funded by its members. Read about the difference between FDIC and SIPC.

The SIPC guarantees at least $100,000 in cash and half a million in securities, although many brokerages have even larger guarantees. So, unless you’re super-rich, odds are pretty good that you’ll never lose money because your brokerage goes belly up.

But remember, the SIPC only insures against bankruptcy, not a fall in market value. So when it comes to the safety of your broker, bank, or anyone else holding your savings, the rule is simple: when in doubt, check it out.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 6 Presidents Day Sales You Should Know About

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,843 more deals!