Geez, I didn't even call you a name, and you tell me I lack manners? I pointed out the obvious, and you got your feelings hurt? Grow up. And I love that little jab about how my account might not be big yet, but when it is I'll understand more about how important it is to have it covered by the SIPC. That's laughable. You said "His concern was "it makes me wonder how safe is my money". If he learns that his account will be insured against the brokerage failure, it should alleviate his concern." Well, why didn't you just tell him that, instead of natting on about how nobody had really answered his question? Have a good day- (that's good manners) Don-
I don't have the foggiest idea...but then again, I'm not the one who mentioned them. But the important thing is that charlie feels more secure knowing his account is protected by them.....lol Have a good day- ( oh my, look at those good manners ) Don-
You folks simply do not have a clue....get your head out of your fantasyland and quit building and believing in all this crap here in ET.. Straight talk...(and have a lovely day)
The best protection that you can control, is to diversify across many different brokerages and dealers that you feel comfortable with...thats all thats it.. Umbrella insurance policies and holding your funds overseas...is out of my realm of understanding.... Risk is always there and a "thing" to be measured. Buy gold if your a pussy. You will double in a few years or earlier at the speed at which things are progressing... Salutations Michael B.
Thanks everyone. Your comments are reassuring. We better quit before someone finds the boxing gloves thouugh.
47. Account Protection Securities are held by the Clearing Firm who is a member of the Securities Investor Protection Corporation (SIPC). Cash and securities held in your Account are protected by SIPC up to $500,000 per customer, of which, a maximum of $100,000 can be un-invested cash. Assets held by other custodial institutions or you are not covered. The Clearing Firm maintains an additional protection in excess of the SIPC insurance coverage through a private insurer. Assets held by other custodial institutions or by you are not covered. SIPC coverage and the additional coverage are provided to afford certain protections against loss to customers resulting from broker-dealer failure. The Account protection applies when SIPC member firms fail financially and are unable to meet obligations to securities customers. It neither protects against losses from the rise and fall in the market value of investment(s) nor is it a guarantee against the bankruptcy or default of the issuer of an investment security purchased by a customer.
IOW, much like any normal bank, you are somewhat protected in the event that the bank goes out of business/bankrupt. They just need to make sure that they tell you that market losses are not protected. When it comes down to it, your money is as safe with these, as it is with any bank of relative size. If you have your savings spread out amongst several banks/credit unions, then you would probs want the same situation here.