Is buying a government backed CD through a broker dangerous?

Question

Is there anyway my money could "fall through the cracks?" What if the broker goes broke? If the broker goes broke, what will happen to my money he is holding for me at the time?

Answer 1

All brokerage accounts are government insured as are the banks up to an amount of $500,000. Beside that most brokerage firms also carry private insurance to insure accounts to a greater amount. TD Ameritrade carries insurance in the amount of $150,000,000 per account. Fidelity has arrainged coverage for any amount through CAPCO.


But to be really safe, keep your individual account balances below $500,000 and cash balances below $100,000, those are the limits of government coverage.

Answer 2

properly there's a three operating day settlement on particular trades. i became not conscious that it also utilized to CDs yet i wager it can. even with the undeniable fact that, which could advise purchase on the fifth day of the month and choose the eighth day except a week end intervenes. Now evaluate this. Are you receiving a more effective CD cost than you'll from an section monetary employer. I assume that you're so evaluate that as an offset to having you money sitting idle. It that does worry you concentration on paying for t-expenditures really. there's a a million day settlement on them and they are loose from state and local taxes. They at present pay about 5% for a 6 month t-bill which could be equivelent to about a 6% CD.

Answer 3

I recommend buying FDIC insured CD's through Charles Schwab. It has worked well for me. Charles Schwab is not in danger of going broke, and lists competitive CD's from all over the USA.

Answer 4

If your interested in C.D.s talk to your bank and keep the brokerage fees!

Answer 5

Buy a united american Flexible Premium Annuity!!!!!