Is cash in a Brokerage account FDIC insured?

Discussion in 'Retail Brokers' started by condorll, Mar 16, 2008.

  1. I'm talking retail personal brokerage accounts like Schwab, IB, Fidelity etc. Is the cash portion of your account FDIC insured?
     
  2. No, but there is SIPC protection up to $100K
     
  3. Thanks Gnome!


    I looked it up, for anyone interested:

    If your brokerage firm goes out of business and is a member of the Securities Investor Protection Corporation (SIPC), then your cash and securities held by the brokerage firm may be protected up to $500,000, including a $100,000 limit for cash. Some firms obtain private insurance policies to provide protection beyond SIPC limits. When a SIPC member becomes insolvent, SIPC will ask a court to appoint a trustee to supervise the firm's liquidation and to process investors' claims.

    SIPC covers most types of securities, such as stocks, bonds, and mutual funds. But SIPC does not protect you against losses caused by a decline in the market value of your securities. And it does not provide protection for investment contracts not registered with the SEC.