SIPC
SIPP INDUSTRIES INC NEW
stockOTC

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This has been removed for violating rule #2: **limit discussion of securities and investments**. Thanks for your post seeking investment advice or discussing specific securities. Please keep all conversations about portfolios and specific investments in our monthly discussion post. Fellow Redditors may offer an opinion on investments. Fidelity doesn’t endorse any of the expressions, opinions, or content posted by non-Fidelity members or any third parties on  r/fidelityinvestments. Do not rely on comments to form the basis of an investment decision. Always make sure to do your due diligence before investing. Remember to look for the “Community Care Representative” flair to make sure it’s us. *Fidelity Brokerage Services LLC, Member NYSE, SIPC*

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This has been removed for violating rule #2: **limit discussion of securities and investments**. Thanks for your post seeking investment advice or discussing specific securities. Please keep all conversations about portfolios and specific investments in our monthly discussion post. Fellow Redditors may offer an opinion on investments. Fidelity doesn’t endorse any of the expressions, opinions, or content posted by non-Fidelity members or any third parties on  r/fidelityinvestments. Do not rely on comments to form the basis of an investment decision. Always make sure to do your due diligence before investing. Remember to look for the “Community Care Representative” flair to make sure it’s us. *Fidelity Brokerage Services LLC, Member NYSE, SIPC*

This has been removed for violating rule #2: **limit discussion of securities and investments**. Thanks for your post seeking investment advice or discussing specific securities. Please keep all conversations about portfolios and specific investments in our monthly discussion post. Fellow Redditors may offer an opinion on investments. Fidelity doesn’t endorse any of the expressions, opinions, or content posted by non-Fidelity members or any third parties on  r/fidelityinvestments. Do not rely on comments to form the basis of an investment decision. Always make sure to do your due diligence before investing. Remember to look for the “Community Care Representative” flair to make sure it’s us. *Fidelity Brokerage Services LLC, Member NYSE, SIPC*

There are three levels of protection. One is the SEC customer protection rule 15c3-3. This requires brokers to segregate (not commingle) your fully paid or excess margin securities. If you have a margin debt the broker can use as they chose securities from your account out to a total market value of 140% of your current margin debt. Securities beyond that 140% of the debt are "excess margin securities" and are protected/segregated just like fully paid shares in your cash account. This protects your securities from creditors of the broker. If a broker goes bankrupt your securities will be moved to a new broker. You are relying upon your broker to comply with this SEC rule. Pick your broker carefully. The second protection is the $500k per customer SIPC protection. This covers fraud/embezzlement/misdeeds/carelessness by brokers. This is rarely used. Many brokers carry additional private insurance, The coverage limits is a total for all customers, so while it may sound like a lot of insurance coverage it is not really much per account.

This has been removed for violating rule #2: **limit discussion of securities and investments**. Thanks for your post seeking investment advice or discussing specific securities. Please keep all conversations about portfolios and specific investments in our monthly discussion post. Fellow Redditors may offer an opinion on investments. Fidelity doesn’t endorse any of the expressions, opinions, or content posted by non-Fidelity members or any third parties on  r/fidelityinvestments. Do not rely on comments to form the basis of an investment decision. Always make sure to do your due diligence before investing. Remember to look for the “Community Care Representative” flair to make sure it’s us. *Fidelity Brokerage Services LLC, Member NYSE, SIPC*

This has been removed for violating rule #2: **limit discussion of securities and investments**. Thanks for your post seeking investment advice or discussing specific securities. Please keep all conversations about portfolios and specific investments in our monthly discussion post. Fellow Redditors may offer an opinion on investments. Fidelity doesn’t endorse any of the expressions, opinions, or content posted by non-Fidelity members or any third parties on  r/fidelityinvestments. Do not rely on comments to form the basis of an investment decision. Always make sure to do your due diligence before investing. Remember to look for the “Community Care Representative” flair to make sure it’s us. *Fidelity Brokerage Services LLC, Member NYSE, SIPC*

Mostly fair, with a couple of things they skipped. The segregation they describe comes from the SEC customer protection rule and applies to fully paid shares, so if you've opted into a fully paid securities lending program, the shares out on loan aren't sitting in your segregated account and may not be covered by SIPC at all, you'd be relying on the collateral the broker posted instead. Uninvested cash in a high-yield sweep usually sits at partner banks under FDIC rather than SIPC, which is fine but comes with different limits and rules. And the realistic downside of a clearing firm failure is less about losing assets and more about your account being frozen for weeks while a trustee moves it to another broker, so it's worth knowing whether lending is switched on in your settings.

I'll say mostly accurate because Apex's SIPC disclosure says it covers up to $500k per customer with half of that for cash. Apex also carries excess coverage with a $150M firmwide limit that's capped per customer at $37.5M for securities and $900k for cash. Neither covers market losses but only a broker failing and assets going missing.