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Scottrade is a member of the Securities Investor Protection Corporation (SIPC), which protects securities held by investors up to $500,000, including a maximum of $100,000 in cash claims*. A brochure with the details of SIPC protection is available at www.sipc.org There is a good chance your cash at Scottrade will be involved in the bank sweep program allowing you to pick up FDIC insurance rather than FDIC eliminating issues related to the disclaimer below. If you are unsure call your local Scottrade branch.*In order for cash to be covered by SIPC or excess SIPC, cash held in an account must be for the purpose of, or as a result of, securities transactions. Cash held in a securities account for the purpose of earning interest, which was not the result of a securities transaction, may not be covered by SIPC or excess SIPC.
Aside from the different coverage these two organizations provide, the big difference between the FDIC and the SPIC is that the FDIC is an independent agency of the federal government backed by the full faith and credit of the United States government and the spic--although created by a Congressional act--is neither a government agency nor a regulatory authority. It's a nonprofit, membership corporation, funded by its member securities broker-dealers. --from article by Lela Davidson September 15, 2008
No One, not your broker, not the SIPC, not the FDIC. The only insurance you have is if your broker goes out of business, the stocks and cash you have in your account is insured. If you would like to buy "insurance" on a stock, the way to do it is with PUT options. Options Weekly has a newletter that teaches people how to do this.
SIPC stands for Securities Investor Protection Corporation. It is an important part of the overall system of investor protection in the United States. While a number of federal, self-regulatory and state securities agencies deal with cases of investment fraud, SIPC's focus is both different and narrow: Restoring funds to investors with assets in the hands of bankrupt and otherwise financially troubled brokerage firms. The Securities Investor Protection Corporation was not chartered by Congress to combat fraud.
no
Current news reports indicate that no trades were ever made by Madoff's advisory company using any investors' funds. Therefore, the brokerage industry was not involved in this theft. SIPC is only available to the brokerage industry which pays premiums for such coverage. Accordingly, no brokerages were involved,no premiums were paid, and no SIPC coverage is available. This is merely A confidence scheme and has no insurance coverage than one would have on A common theft unless the victim had indepently purchased coverage.
The Securities Investor Protection Corporation, or SIPC works either as a trust or court-appointed trustee to help recover funds in a missing asset case.
FACTS Owned jointly by TD Bank in Canada AMTD has their own balance sheet and stock They have been around for years and years under the name TD Waterhouse TD Bank would not let their name be ruined if AMTD did start having problems TD Ameritrade is one of the safest out there, if not the safest today. TD Ameritrade is SIPC insured and has has excess insurance through Loyds of London. TD Ameritrade offers a FDIC insured money money fund for settlement and cash TD Ameritrade does not have any direct exposure to the mortgage crisis = Answer = is very "Safe"
Scottrade is a very healthy company financially. They have always been very conservative and have weathered the most recent financial crisis very well. Scottrade was never involved in the toxic debt instruments such as mortgage backed securities and invest their assets in short term US Treasuries. They are fully covered by the SIPC and even have additional insurance coverage from a private firm to increase limits above and beyond that which is included with SIPC. See Related Links (below) for more detailed information related to Scottrades financial health.
Sorry but I am new at this. I have a friend with a 401K with the failed company Lehman Brothers. She fears she may have lost all of her 401K money. Does SIPC cover the bankrupcy?
see link: http://www.thestreet.com/s/what-happens-when-a-brokerage-fails/funds/saving-money/10393483.html?puc=aoljjc
Yes, online investing is just as safe as using a broker. Online brokerage firms are required to meet minimum equity requirements and to be a member of SIPC.