Let's assume I use a broker like Ameritrade or Schwab etc. to buy Mutual funds, ETFs, stocks etc.
Now, let's assume that some point down the line the broker company goes bankrupt or shuts down due to other reasons.
What exactly happens to my investments. I assume those are safe (or not entirely?! eeks!)? But how do the instruments get transferred to a new broker etc.
In other words, how portable are my investments? Are there significant transfer costs?
Just like there's federal deposit insurance is there any equivalent for brokerage firms? In today's world where most of the data is stored in electronic format how would I even access the details of my portfolio if my broker suddenly shut down?
Are there any similar cases or precedent?
Note: I am not talking about the stock target itself going bankrupt. Just the broker going bankrupt. i.e. Also NOT seeking protection against market influenced value decline. That I understand.
To rephrase: To what extent is a broker failure affecting me? e.g. Say I use a broker to buy a house or a car via a broker. Then the broker bankruptcy hardly affects my asset. What I want to know is how similar or different is this situation when it comes to investments?
