bank account vs. brokerage account?

Question

Can anyone add their opionion if what I say is true? Due to all identity theft which is increasing every day. Just wanted some more input.

A bank account is insured up to 100,000 but not in the case of someone stealing your identity and taking your money out of your account. You are screwed then.

A Brokerage account like TDameritrade or Etrade is insured up to 100,000 plus they say if you lose money because of fraud or identity theft they will give you back the full amount you lost.

Now chances are your bank account will be fine because people have to steal your identity get fake drivers license and forge your signature. But honestly why take chances Brokerage account is 100 percent safe and they have the same options as a bank with checking account and CDs and money market account, ect.

What do you think???

Answer 1

WRONG.....a bank is insured if the bank goes under. The FDIC will pay your money to you. But if someone forges your name and takes your money, you are still covered because it is the banks fault for not using good procedures to be sure the person was you.

A brokerage account is only insured if the brokerage firm or broker is fraudulent, and steals your money, but if the market goes down and your investments lose money, tough!

Bank is 100% safe as long as you have below 100,000.

Answer 2

THEY BOTH ARE GOOD, IT MAYBE A BANK IS QUICKER AND MORE AVAILABLE. I DONT KNOW IF YOU CAN CASH A BROKER CHECK AT A BANK, I RATHER DOUBT IT. I THINK NOW BANKS WILL COVER ANY THEFT FROM YOU ACCOUNT.

Answer 3

Why don't you buy Identity Theft Insurance and forget about it?