How Safe is the Money in Your Brokerage Account?
📅
Jan 25, 2025
👤
Security Expert
⏱️
6 min read
Investors often worry about what happens if their broker goes bust. Fortunately, protections are in place.
SIPC Protection
In the US, the SIPC protects up to $500,000 in assets if a brokerage firm fails and your assets are missing.
Segregation of Assets
Legally, your stocks and bonds are your property. Even if a broker goes bankrupt, your assets are typically safe from their creditors.
FDIC for Cash
Most brokers 'sweep' your uninvested cash into partner banks where it is protected by FDIC insurance up to $250,000.