Is Your Brokerage Safe?

Better Investing

What's Hot

Do This or Your iPhone Bill May SkyrocketSave

23 Upgrades Under $50 to Make Your House Look AwesomeAround The House

Trump Worth $10 Billion Less Than If He’d Simply Invested in Index FundsBusiness

11 Places in the World Where You Can Afford to Retire in StyleMore

What You Need to Know for 2017 Obamacare EnrollmentFamily

8 Things Rich People Buy That Make Them Look DumbAround The House

32 of the Highest-Paid American SpeakersMake

Amazon Prime No Longer Pledges Free 2-Day Shipping on All ItemsMore

More Caffeine Means Less Dementia for WomenFamily

9 Tips to Ensure You’ll Have Enough to RetireFamily

5 DIY Ways to Make Your Car Smell GreatCars

30 Awesome Things to Do in RetirementCollege

5 Spots Where Retirees Can Live for Less Than $40,000Real Estate

10 Ways to Pull Together the Down Payment for a HomeCredit & Debt

10 Ways to Reduce Your Homeowner’s Insurance RatesFamily

50 Ways to Make a Fast $50 (or Lots More)Grow

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: How Does Debt Affect Survivors After a Loved One’s Death?

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 1,692 more deals!