Is Your Brokerage Safe?

Better Investing

What's Hot


How to Cut the Cable TV Cord in 2017Family

8 Major Freebies and Discounts You Get With Amazon PrimeSave

8 Creative Ways to Clear ClutterAround The House

Study: People Who Curse Are More HonestFamily

This Free Software Brings Old Laptops Back to LifeMore

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

The 3 Golden Rules of Lending to Friends and FamilyBorrow

6 Reasons Why Savers Are Sexier Than SpendersCredit & Debt

Resolutions 2017: Save More Money Using 5 Simple TricksCredit & Debt

Porta-Potties for Presidential Inauguration Cause a StinkFamily

Protecting Trump Will Cost Taxpayers $35 MillionFamily

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

5 New Year’s Resolutions That Will Pay Off 10 Years From NowCollege

10 Simple Money Moves to Make Before the New YearFamily

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 the Trump Tax Plan Will Affect You

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 1,827 more deals!