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Does anyone know what happens in the event that a brokerage like robinhood fails? Are the assets insured by a federal agency or is it wiser to switch my portfol
by cwperkins 9y ago
Does anyone know what happens in the event that a brokerage like robinhood fails? Are the assets insured by a federal agency or is it wiser to switch my portfolio to another broker?
- jlgaddis 9y agoRead the small print at the bottom of the page? > Robinhood Financial is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC) ... > Robinhood Crypto is not a member of FINRA or SIPC. Cryptocurrencies are not stocks and your cryptocurrency investments are not protected by either FDIC or SIPC insurance.
- cwperkins 9y agoThank you
- 013a 9y agoAll of the assets you have in Robinhood aren't actually held by Robinhood; they're held by Apex, which is a huge firm that many companies use. If Robinhood goes down, your assets are still with them and there'd be some reasonable way to transfer them to another brokerage. If Apex goes down, which is vastly more unlikely, Federal SIPC insurance kicks in up to $500,000.
- dsr_ 9y agoAccording to all that light print at the bottom of the website, up to $500K in securities are protected... and all your crypto belongs to whoever manages to grab it, sue all you like afterwards.