Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [sipc]

The Securities Investor Protection Corporation (US)

The Securities Investor Protection Corporation is a federally mandated, non-profit, member-funded, United States corporation created under the Securities Investor Protection Act of 1970 that mandates membership of most US-registered broker-dealers.

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What happens to my stocks when broker goes bankrupt?

Let's say I have bought many stocks, ETFs and other products through Degiro. If degiro closes, do I have "access" to my financial products? How? Can I sell them aftewards through another broker?
The Strong Programmer
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What happens to investors' money in SPY ETF if State Street becomes bankrupt?

SPY is one of the most popular ETF tracking S&P500 index. If the ETF issuer State Street Global Advisors becomes bankrupt in a black swan event, what happens to investors' money? Is the money 100% protected from a credit event? Or will the money be…
curious
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Sanity check on recommendations from a financial advisor

Recently my wife and I have decided that we make enough money to go see a financial advisor and see how we can be smarter with our money. The most important topic we discussed with the advisor was how to best invest our money so its not sitting in…
SiegeX
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Is my cash safe with Robinhood banking?

Just today Robinhood released its own banking with 3% annual yield. The money will be SIPC insured. While I understand that SIPC wont cover my investments losing their value, however the cash in the Robinhood saving account should always be insured…
Nirvedh Meshram
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Stability of a Broker: What if your broker goes bankrupt? Could you lose equity in your account?

What exactly happens if a broker runs out of funds? Could you actually lose equity in your account? If so, what should you be examining when looking at the financial report of your broker?
Benjamin
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Is SIPC coverage on cash as strong as FDIC?

I'm considering opening a brokerage account with a broker that is requesting $10,000 minimum funding. That money will not go to an FDIC covered bank account. But the broker does have an SIPC insurance. I understand that SIPC covers $250,000 of the…
Ofer
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FDIC vs SIPC: Are they the same?

Before posting this question I did read Is SIPC coverage on cash as strong as FDIC?, but the answer did not seem to make much sense/lacked many answers to help clarify for me. I was doing some reading online, and from what I understand, they are…
ggiaquin16
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Is there any real risk in having all mutual funds with the same brokerage?

My retirement accounts (Roth IRA and traditional 401k) are with Fidelity. In the unlikely even that Fidelity goes under, what happens to my money - is it gone? If so, does it make sense from a risk management/diversification standpoint to move the…
Jeremy
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Can the Securities Investor Protection Corporation (SIPC) itself go bankrupt?

The Securities Investor Protection Corporation (SIPC) insures investor accounts up to $500K: Terms of SIPC help. Customers of a failed brokerage firm get back all securities (such as stocks and bonds) that already are registered in their name…
t0x1n
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Does SIPC protect securities purchased in foreign exchanges?

Suppose I open an account at an SIPC-protected broker (say Interactive Brokers) and buy 500,000$ worth of BP stocks on the LSE (London Stock Exchange). Now suppose Interactive Brokers goes bankrupt, and my BP stocks are missing. Am I insured? Had I…
t0x1n
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Can stock brokerage firms fail?

Can brokerage firms like Fidelity, TD Ameritrade, or Vanguard fail? They seem pretty unshakable, but the recent financial crisis made it clear that even very large financial companies can fall. And over the timescale of my lifetime, it seems very…
Jordan
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If a brokerage commits fraud (by not separating customer funds), is there any SIPC protection?

Recent news on MF Global suggests the possibility that the brokerage firm did not segregate customer accounts. Suppose I have an account at MF Global and suppose they have failed to segregate my account. The company goes bankrupt. Would the SIPC…
kfmfe04
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Simple and safe way to manage a lot of cash

I have an older relative that I am going to help in managing their money. His income is fine to live on. In terms of assets, he has about $250k in a variety of separate CDs, stocks, checking accounts, savings accounts, etc. Overall, he is not…
Mark
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Does SIPC protection apply if a brokerage doesn't actually purchase securities?

Suppose there is a brokerage (not like Madoff case), where investors buy ordinary stocks/ETFs (qqq, brk-b orcl or any stock traded on NASDAQ/NYSE, not pink sheet or unlisted) at a time (and never sell), and after many years it is discovered that the…
Neil
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How would a small investor protect their nest egg if it goes beyond SIPC limit and bank accounts if beyond FDIC limits

Sometimes I wonder if I won a few million in the lottery, how would I protect it? There is news that a big company like Roku had $487 million with a failed bank (SIVB). I wonder how the small investor protects their nest egg if it goes beyond SIPC…
puzzled
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