Comments on: SIPC Insurance Coverage: What Happens if Your Broker Fails?

By: J. Brumley

J. Brumley — Thu, 21 May 2009 20:32:57 +0000

Good points to make. Investors should note that many brokerages voluntarily purchase additional insurance above and beyond the minimum required. Needless to say, those may be better choices if you’re unsure about your firm.

As B7 stated, reputation means everything – stick with the better names.

By: B7

B7 — Wed, 20 May 2009 03:15:42 +0000

Great post! The risks of the brokerage going bankrupt is often totally ignored.

There are other brokerage related risks as well. What happens if your account disappears? Or your deposit? Or a certain trade? What happens if someone transfers all the money out of your account?

It’s important to use a brokerage with a great rep. That might be the best way to mitigate these risks…