SIPC protection $500k per account

I do not know how to answer a hypothetical question like that with a BD that a member of SEC/FINRA/SIPC with very strict reporting standards.

 

If you're really worried use multiple brokers.

It helps protect you from other things like IT failures shutting down a broker.

 

Hypothetical yes, but in the case of FDIC, history showed that FDIC always made the depositors whole even for those that exceeded the limit. So, I have no problem doing business with a small local bank even when my deposit exceeds the limit.

If we can be somewhat reassured that SIPC can act in a similar fashion, I would be more inclined to consider smaller brokerages because they often offer better service.

 

You robbing a bank, Bro?











cashacct

 

But still it seems only max $500k per person is protected, not per account. Isn't it?

 

My info may be old (years ago I was a Principal)... but the way the regs read back then regarding this... "SIPC insurance covered stocks/cash MISSING" from an account... for ANY reason... up to the limits of SIPC coverage.

 

Principal of what bucket shop?

 

https://affordablebuckets.com/shop/

 

search for MF global

 

https://www.sipc.org/news-and-media...pleased to have,100 percent of allowed claims