Your personal goals and financial objectives are critical factors in determining how your portfolio should be invested. Of equal importance is the assurance that the assets in your account are properly safeguarded.
Firstrade Securities is a “Member of the Securities Investor Protection Corporation (“SIPC”), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org”
Our clearing firm, Apex Clearing Corporation, has purchased an additional insurance policy to supplement SIPC protection. This additional insurance policy, widely known as "excess SIPC," becomes available to customers in the event that SIPC limits are exhausted. This additional insurance provides protection for securities and cash up to an aggregate limit of $150 million, subject to sub-limits for any one customer of $37.5 million for securities and $900,000 for cash. Similar to SIPC protection, this additional insurance does not protect against a loss in the market value of securities. For additional information, please contact your broker.
SIPC was created in 1970 as a non-profit, non-government, membership organization, funded by member broker/dealers. Its primary role is to return funds and securities to customers if the broker/dealers holding their assets become insolvent.
It is important to understand that SIPC and "Excess SIPC" protect customer accounts against losses caused by the financial failure of the broker-dealer, but not against an increase or decrease in the market value of securities in customers' accounts. SIPC does not protect against market risk, which is the risk inherent in a fluctuating market.
SIPC protects most types of securities, such as notes, stocks, bonds, mutual funds and other investment company shares, and other registered securities. It does not cover instruments such as unregistered investment contracts, unregistered limited partnerships, and interests in gold, silver, or other commodity contracts or commodity options.
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