Quote:
Originally Posted by GGG
Underlying securities are insured through CIPF up to 1 million.
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On top of that, there are very few legitimate reason that someone's securities would be lost if a brokerage became insolvent, as they're normally kept segregated from the organization's own money. Whereas with a bank, they can be doing everything above board but still not be able to cover deposits if the worst case scenario happens.
There are exceptions (like with brokers lending out shares for short sellers) where it could theoretically be an issue, but by and large someone's securities would be fine if a brokerage fails. So the $1M coverage would be adequate for accounts that are many times that size.