How does Scottrade hold customer cash balances?
Scottrade is a member of the Securities Investor Protection Corporation (SIPC), which protects securities held by investors up to $500,000, including a maximium of $100,000 in cash claims*. A brochure with the details of SIPC protection is available at www.sipc.org. Scottrade has also purchased excess coverage (excess SIPC) from our insurers or $24.5 million (inclusive of $900,000 in cash claims) to pay amounts in excess to those returned in a SIPC claim, subject to an aggregate Scottrade limit of $100,000,000. Taking into account SIPC and excess SIPC coverage, the Total Investor Protection is $25,000,000, inclusive of up to $1,000,000 in cash. This coverage does not protect against loss of the market value of securities. SIPC coverage is not the same as the insurance on bank accounts provided by the Federal Deposit Insurance Corporation (FDIC). * In order for cash to be covered by SIPC, cash held in an account must be the for the purpose of, or as a result of, securities transactions.
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- How does Scottrade hold customer cash balances?
