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by tialaramex
2111 days ago
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Well the fun part is that the way it's different is that there would be a bank account with your money in it, that the brokerage isn't allowed to touch. So, you're protected from the brokerage going bankrupt - your money is still yours if that happens. But it's still in a bank account, so if the bank goes under you're screwed. See my other comment in this thread though... |
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The Securities Investor Protection Corporation (SIPC) was created to protect against the loss of customer assets at brokerage firms. SIPC offers protection of up to $500,000, including a $250,000 limit for cash, if a brokerage firm fails, and covers most types of securities, such as stocks, bonds, and mutual funds. [0]
[0] https://www.schwab.com/public/file/P-3042070/Asset_Protectio...