Is My Money Safe in a Brokerage Account
In this video, Thomas Brock explains that brokerage accounts are SIPC-insured up to $500,000, protecting your assets if the firm fails but not against investment losses.
Video Transcript
Brokerage accounts are different. They're insured by the Securities Protection Insurance Corporation. This insurance covers you up to five hundred thousand dollars per account. It doesn't protect you against investment risk. It does, however, protect your assets in the event that that brokerage firm goes under. So you can lose money on your investments, but you can't lose money because that firm failed.
