Account Protection

Account Protection

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.

SIPC Coverage

Firstrade Securities Inc. (“Firstrade”) is a Member of the Securities Investor Protection Corporation (“SIPC”), which protects securities customers of its members up to $500,000 (including $250,000 in any cash awaiting reinvestment). An explanatory brochure is available upon request or at www.sipc.org.

Other types of Protection

Our clearing firm, Apex Clearing Corporation (“Apex”), has purchased an additional insurance policy through a group of London Underwriters (with Lloyd's of London Syndicates as the Lead Underwriter) to supplement SIPC protection. This additional insurance policy becomes available to customers in the event that SIPC limits are exhausted and provides protection for securities and cash up to an aggregate of $150 million. This is provided to pay amounts in addition to those returned in a SIPC liquidation. This additional insurance policy is limited to a combined return to any customer from a Trustee, SIPC and London Underwriters of $37.5 million, including cash of up to $900,000. This coverage does not protect against loss of the market value of securities.

FDIC Insurance

When an account is enrolled in Money Market Funds, Apex sweeps excess cash balances to a Program Bank. These funds, along with any other deposits held at the same bank, are FDIC-insured up to the standard limit, subject to certain conditions. The FDIC insurance limit is based on various factors, and additional information can be found at www.fdic.gov. If total deposits (including excess cash and non-Program funds) at the same bank exceed the limit, any excess may not be insured.

Deposits at a Program Bank outside of the Program can be excluded from being swept into that bank. For more details, see APEX FDIC-INSURED SWEEP PROGRAM Section VII. Consulting with financial or legal advisors is recommended to understand FDIC limits and program participation.

Apex is not responsible for considering non-Program deposits when sweeping excess cash. It is important to note that FDIC insurance covers only the failure of FDIC-insured banks, not Apex Clearing Corporation, which is not FDIC-insured. Monitoring deposits to ensure they remain within FDIC coverage limits is the responsibility of the account holder. The FDIC may require documentation before making insurance payments.