Hi Guys ... Are these amounts are protected and insured by per "Each Brokerage Account" or Per " Indivitual Person" ? As an example, you have trading account with three different brokerages with Interactive Brokers, E*Trade, Schwab and you have equal amount with each brokerage ? - Are you insured for $750k bank deposit with FDIC ? - Are you protected for $1.5 million securities with SIPC ? Thank you
The short answer is that in most cases, when you have multiple accounts in the same name, regardless of whether they are at the same broker or different brokers, the limit is applicable to the total combined balance of all accounts. You do not get $500K protection for each account. However, if you have a "regular" account and an IRA, the limits are separate for those accounts, because an IRA is held in a "separate capacity." In other words, it's not held in the same name, because the IRA is held by a custodian or trustee. A joint account with your spouse is also considered to be a "separate capacity" from an individual account. The rules can get complicated. Have a look: https://www.sipc.org/for-investors/investors-with-multiple-accounts BMK
The odds of either one of those brokers going down is on the extreme side of low. The E-trade/MS combo is probably the weakest given their past of off balance sheet items but the odds would be extreme given their strong balance sheets.
Thank you BMK ...Very helpful. Something that not cleared to me is 500K securities insured is inclusive of 250K bank deposits cash ? or it's 500K securities + 250K cash deposits = 750K combined
as you know, Schwab bought TD Ameritrade, I have accounts on both firms, and I asked them the same question about 2 months ago. no one has given me an answer; I think the SPIC insurance for your stock holdings only, and the FDIC insurance is for your cash. beyond the insurance limits is your loss. Robinhood could be another option (its holding is $50B