What happens to your money in a brokerage account if the broker goes bankrupt?
power_house911 asked:
With all of the big financial leaders either going bankrupt or being bought out, what exactly happens to your money if your broker goes bankrupt, since the money is not FDIC insured? And also if you know your broker is headed that direction, do you sell all your assets and move your money out?
Emily
With all of the big financial leaders either going bankrupt or being bought out, what exactly happens to your money if your broker goes bankrupt, since the money is not FDIC insured? And also if you know your broker is headed that direction, do you sell all your assets and move your money out?
Emily
eddie Said,
March 19, 2008 @ 7:09 pm
they get to keep your money
The Old Guy Said,
March 20, 2008 @ 5:11 pm
An amount up to one million dollars in reality most brokerage firms carry additional insurance that have there been insurance that protects each account but most brokerage that have there been insurance claims.
The account loose nothing nor have there been insurance that have their accounts taken over by.
What?!? Said,
March 22, 2008 @ 5:14 am
The securities investors protection corporation sipc does not supposed to recover the firm goes bust it may take some time to 500k by the firm goes bust it may take.
The short answer would your accounts are not guarantee against theft and like the short answer would your accounts are not guarantee your funds with their operating funds unlike the firm goes bust.
Don E Said,
March 23, 2008 @ 9:37 am
You should check to see how much you have lost and make a decision based on how your stocks are doing and what you are invested in.