Is Your Brokerage Safe?

Better Investing

What's Hot


5 Reasons to Shop for a Home in DecemberFamily

Shoppers Boycott Businesses Selling Trump-Branded ProductsBusiness

15 Things You Should Always Buy at a Dollar StoreMore

Giving Thanks: Why Foreigners Find America AmazingAround The House

New Email Phishing Scam Targets Amazon ShoppersMore

50 Best Gifts Under $25 for Everyone on Your ListFamily

Why Washing Your Turkey Can Make You IllFamily

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

The 7 Worst Things to Buy at a Dollar StoreMore

What the Richest 1 Percent Earns in Every StateFamily

10 Ways to Retire Earlier Than Friends on the Same SalaryGrow

The 10 Best Ways to Blow Your MoneyCredit & Debt

The 50 Hottest Toys of the Past 50 YearsFamily

30 Awesome Things to Do in RetirementCollege

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: Missed HBO’s ‘Westworld’? Here’s How to Watch it, Along With Everything on HBO, Free

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 1,695 more deals!