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robson
ParticipantSorry that was an incomplete answer to begin with. According to http://www.lpl.com/html/downloads/MKT135faq-1003.pdf “Customer Assets Are Protected By SIPC
In addition, Congress created the Securities Investor Protection Corporation (SIPC) in 1970 to protect
customers of member broker-dealers that may fail or be liquidated. If any securities or cash are missing
from eligible customer accounts, the corporation steps in to replace those securities and cash.
This protection is limited to $500,000 per customer, including up to $100,000 in cash. SIPC does not
protect customers against market risk. (Losses resulting from a fall in a security’s value are not covered.)
See http://www.sipc.org for more information about SIPC.”I’m just trying to verify that this would cover $100k in cash in a brokerage account in addition to the 100 the FDIC would cover in a savings account.
ParticipantSorry that was an incomplete answer to begin with. According to http://www.lpl.com/html/downloads/MKT135faq-1003.pdf “Customer Assets Are Protected By SIPC
In addition, Congress created the Securities Investor Protection Corporation (SIPC) in 1970 to protect
customers of member broker-dealers that may fail or be liquidated. If any securities or cash are missing
from eligible customer accounts, the corporation steps in to replace those securities and cash.
This protection is limited to $500,000 per customer, including up to $100,000 in cash. SIPC does not
protect customers against market risk. (Losses resulting from a fall in a security’s value are not covered.)
See http://www.sipc.org for more information about SIPC.”I’m just trying to verify that this would cover $100k in cash in a brokerage account in addition to the 100 the FDIC would cover in a savings account.
ParticipantSorry that was an incomplete answer to begin with. According to http://www.lpl.com/html/downloads/MKT135faq-1003.pdf “Customer Assets Are Protected By SIPC
In addition, Congress created the Securities Investor Protection Corporation (SIPC) in 1970 to protect
customers of member broker-dealers that may fail or be liquidated. If any securities or cash are missing
from eligible customer accounts, the corporation steps in to replace those securities and cash.
This protection is limited to $500,000 per customer, including up to $100,000 in cash. SIPC does not
protect customers against market risk. (Losses resulting from a fall in a security’s value are not covered.)
See http://www.sipc.org for more information about SIPC.”I’m just trying to verify that this would cover $100k in cash in a brokerage account in addition to the 100 the FDIC would cover in a savings account.
ParticipantFrom http://www.sipc.org/how/covers.cfm
“The cash and securities – such as stocks and bonds – held by a customer at a financially troubled brokerage firm are protected by SIPC.Among the investments that are ineligible for SIPC protection are commodity futures contracts and currency, as well as investment contracts (such as limited partnerships) and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933.
It is important to recognize that SIPC does not work the same way as the Federal Deposit Insurance Corporation in terms of blanket protection of losses.”
Just make sure the institution is SIPC insured, which Etrade is. Does anyone know if this means you can have a savings account with $100k covered by FDIC and then have a brokerage account with another $100k that would then be covered by the SIPC?
ParticipantFrom http://www.sipc.org/how/covers.cfm
“The cash and securities – such as stocks and bonds – held by a customer at a financially troubled brokerage firm are protected by SIPC.Among the investments that are ineligible for SIPC protection are commodity futures contracts and currency, as well as investment contracts (such as limited partnerships) and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933.
It is important to recognize that SIPC does not work the same way as the Federal Deposit Insurance Corporation in terms of blanket protection of losses.”
Just make sure the institution is SIPC insured, which Etrade is. Does anyone know if this means you can have a savings account with $100k covered by FDIC and then have a brokerage account with another $100k that would then be covered by the SIPC?
ParticipantFrom http://www.sipc.org/how/covers.cfm
“The cash and securities – such as stocks and bonds – held by a customer at a financially troubled brokerage firm are protected by SIPC.Among the investments that are ineligible for SIPC protection are commodity futures contracts and currency, as well as investment contracts (such as limited partnerships) and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933.
It is important to recognize that SIPC does not work the same way as the Federal Deposit Insurance Corporation in terms of blanket protection of losses.”
Just make sure the institution is SIPC insured, which Etrade is. Does anyone know if this means you can have a savings account with $100k covered by FDIC and then have a brokerage account with another $100k that would then be covered by the SIPC?
ParticipantFrom http://www.sipc.org/how/covers.cfm
“The cash and securities – such as stocks and bonds – held by a customer at a financially troubled brokerage firm are protected by SIPC.Among the investments that are ineligible for SIPC protection are commodity futures contracts and currency, as well as investment contracts (such as limited partnerships) and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933.
It is important to recognize that SIPC does not work the same way as the Federal Deposit Insurance Corporation in terms of blanket protection of losses.”
Just make sure the institution is SIPC insured, which Etrade is. Does anyone know if this means you can have a savings account with $100k covered by FDIC and then have a brokerage account with another $100k that would then be covered by the SIPC?
Participanti found it interesting you compared it to an earthquake because a quake is nothing more than a release of building tension and gets worse the longer it builds
Participanti found it interesting you compared it to an earthquake because a quake is nothing more than a release of building tension and gets worse the longer it builds
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