Accounts who hold cash in banks. Protection by FDIC or SIPC?

Discussion in 'Retail Brokers' started by jackpearson, Aug 1, 2011.

  1. Some brokers are now holding your cash balances in FDIC banks rather than money markets.

    With those brokers, who protects the money in your account?

    The SIPC or the FDIC?

    Also, is there any pro's or con's in brokers holding the cash portion of your account in an FDIC bank vs a money market?

    thanks
     
  2. rmorse

    rmorse ET Sponsor

    What would be an example of a broker that keeps customer cash in a bank account rather than the Prime Broker's account?
     
  3. Catoosa

    Catoosa

    TD Ameritrade & UBS
     
  4. if cash is deposited into an FDIC insured bank, then it's protected by the FDIC. tdameritrade's website says this, you lazy bum.