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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
What else can I help you with?
Is there any FDIC or SIPC insured Forex Broker?
Forex brokers are generally not insured by the FDIC, as the FDIC primarily covers bank deposits rather than forex trading accounts. However, some forex brokers may be members of the SIPC, which protects customers of member firms in the event of a brokerage failure, though this typically applies to securities rather than forex. It's important for traders to check the specific regulatory status and insurance coverage of the broker they choose to ensure their funds are adequately protected. Always consider the regulatory environment of the broker's operating jurisdiction.
Can you explain how SIPC works in protecting investors' assets?
The Securities Investor Protection Corporation (SIPC) protects investors' assets in case a brokerage firm fails. SIPC provides up to 500,000 in coverage for securities and cash held by the firm. This coverage helps investors recover their assets if the brokerage firm goes bankrupt or engages in fraudulent activities.
Was madoff covered by sipc?
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.
Can you explain how SIPC insurance works in protecting investors' assets?
SIPC insurance protects investors' assets by providing up to 500,000 in coverage for securities held by a brokerage firm in case the firm fails. This coverage includes cash and securities such as stocks and bonds. It does not protect against investment losses or fraud.
Is your Lehman Brothers 401K Safe?
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?
Is there any FDIC or SIPC insured Forex Broker?
Forex brokers are generally not insured by the FDIC, as the FDIC primarily covers bank deposits rather than forex trading accounts. However, some forex brokers may be members of the SIPC, which protects customers of member firms in the event of a brokerage failure, though this typically applies to securities rather than forex. It's important for traders to check the specific regulatory status and insurance coverage of the broker they choose to ensure their funds are adequately protected. Always consider the regulatory environment of the broker's operating jurisdiction.
Is your cash safe in Scottrade account?
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.
Can you explain how SIPC works in protecting investors' assets?
The Securities Investor Protection Corporation (SIPC) protects investors' assets in case a brokerage firm fails. SIPC provides up to 500,000 in coverage for securities and cash held by the firm. This coverage helps investors recover their assets if the brokerage firm goes bankrupt or engages in fraudulent activities.
Was madoff covered by sipc?
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.
Can you explain how SIPC insurance works in protecting investors' assets?
SIPC insurance protects investors' assets by providing up to 500,000 in coverage for securities held by a brokerage firm in case the firm fails. This coverage includes cash and securities such as stocks and bonds. It does not protect against investment losses or fraud.
WHAT brokerage firms are spic insured?
Securities Investor Protection Corporation (SIPC) insurance covers most brokerage firms that are members of SIPC. This includes well-known firms like Charles Schwab, Fidelity Investments, E*TRADE, and TD Ameritrade. SIPC protects customers against the loss of cash and securities in the event of a brokerage firm failure, but it does not insure against investment losses. Always check with a specific brokerage to confirm their SIPC membership and coverage details.
Are futures markets covered by sipc?
no
Who insures your stocks in the stock market?
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.
How does SIPC protect investors?
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.
Is SIPC a type of insurance and under what circumstances would SIPC apply?
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.
What is the financial health of Scottrade?
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.
Is lehman Brothers 401K accounts still protected by SIPC?
Lehman Brothers' 401(k) accounts, like other retirement accounts, are generally not protected by the Securities Investor Protection Corporation (SIPC) because SIPC primarily covers brokerage accounts against the loss of cash and securities due to a firm's failure. Instead, 401(k) plans are typically protected under the Employee Retirement Income Security Act (ERISA). However, the specific protections can vary based on the plan's structure and the type of investments held within the account. It's advisable for former Lehman Brothers employees to consult financial advisors or legal experts for detailed guidance.
