Fidelity offers the trading platform and investment capabilities of a modern broker while relying on the banking system to provide deposit insurance on swept cash. Instead, your cash balances are protected by SIPC and are typically swept into eligible partner banks.
How Fidelity Brokerage Ensures Client Safety With SIPC and Partner Bank Protections
Here is a breakdown of how this applies to your assets: Asset Type Coverage Limit Cash (subject to aggregate limit) $250,000 per account Securities (stocks, bonds, etc. The Bottom Line for Investors.
Certain asset classes and products are excluded, including commodities held outside of a brokerage account, life insurance policies, and fixed annuities. Understanding the Difference Between FDIC and SIPC The Federal Deposit Insurance Corporation (FDIC) insures deposits held in banks and savings institutions, protecting up to $250,000 per depositor, per insured bank.
How Fidelity Brokerage Ensures Client Safety With SIPC and Partner Bank Protections
Understanding these exclusions ensures you do not mistake coverage for a guarantee against every type of financial risk. This hybrid model allows investors to enjoy the best of both worlds: the growth potential of the markets and the stability of federally backed insurance on liquid funds.
More About Is fidelity investment fdic insured
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