SIPC
SIPP INDUSTRIES INC NEW
stock OTC

Thanks for your post. We recently updated our rules to ask that all investment strategy discussion be kept within the weekly discussion post.
[Weekly Discussion Thread](https://www.reddit.com/r/fidelityinvestments/comments/1nhmoxv/weekly_discussion_thread_volatility_market/)
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Thanks for your post seeking investment advice or discussing specific securities. Please keep all conversations about portfolios and specific investments to our weekly discussion post.
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To find research and tools to help you, click on the "News & Research" on fidelity.com on the menu bar. This will expand a sub menu where you will be able to learn about and research mutual funds, stocks, ETFs, fixed income, and more. You can also go to "Investment Products" on the menu bar to learn more about the types of accounts that we offer. [Click here to visit Fidelity.com](https://www.fidelity.com)

Fidelity Brokerage Services LLC, Member NYSE, SIPC

FDIC is for your bank account. The SIPC covers securities

This post/comment was removed for violating rule #11 – Sharing Account Milestones.
Sharing account milestone - To assist our customers quickly during business hours, we’re limiting posts that share account milestones to weekends only. Those that are posted for the purpose of customer service are allowed anytime. If you share your milestone, please provide details like how long you’ve been saving, the types of investment strategy you used, your future plans for the funds, etc. Low effort posts will be removed.
Fidelity Brokerage Services LLC, Member NYSE, SIPC

Thanks for your post. We recently updated our rules to ask that all investment strategy discussion be kept within the weekly discussion post.
[Weekly Discussion](https://www.reddit.com/r/fidelityinvestments/comments/1nhmoxv/weekly_discussion_thread_volatility_market/)
This post/comment has been removed for violating rule #2. - In regard to securities and investments

Thanks for your post seeking investment advice or discussing specific securities. Please keep all conversations about portfolios and specific investments to our weekly discussion post.
We are not able to assist with these types of questions on reddit but have a variety of tools and resources to help our clients invest their funds and find an investment that fits their objectives and risk tolerance. To learn more about investing check out the "Getting started with investing" page on our learning center [here](https://www.fidelity.com/learning-center/overview).

To find research and tools to help you, click on the "News & Research" on fidelity.com on the menu bar. This will expand a sub menu where you will be able to learn about and research mutual funds, stocks, ETFs, fixed income, and more. You can also go to "Investment Products" on the menu bar to learn more about the types of accounts that we offer. [Click here to visit Fidelity.com](https://www.fidelity.com)

Fidelity Brokerage Services LLC, Member NYSE, SIPC

Thanks for your post. We'd be happy to provide an official response to your post, but first please remove your instance of s***. We do not allow profanity. Let us know if you edit it and we will re-approve or repost.
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Do not use profanity or obscene language. Remember, this is an educational and customer care focused community.
Fidelity Brokerage Services LLC, Member NYSE, SIPC

This post/comment has been removed for violating rule #4 – Do not use profanity

Do not use profanity or obscene language. Remember, this is an educational and customer care focused community.
Fidelity Brokerage Services LLC, Member NYSE, SIPC

This is absolutely incorrect. Your broker does not own your shares, you do. Your cash is 'owned' by the broker but protected by SIPC. There is no need for SIPC protection for actual shares because you own the shares.
The free brokers absolutely do move shares around when you trade, they do not give you monetary adjustments. Options are also not cash settled in the US - they are exercised for shares (if they're in the money on expiry), or they are canceled out by the opposite (so if you are short a call option, and you buy a call option, you can cancel them out leading to no share exercise).
Market makers sometimes will trade in dark pools off exchange, but even then, your shares are absolutely traded with others. Even in a dark pool, at the end of the day, your shares are still traded to whoever, and ownership is assigned appropriately. That's why it takes several days to clear trades. If it was just on an internal ledger, it would be instantaneous - which it's not (sometimes brokers will mask this by crediting/debiting you instantly, but they're fronting you the money. This is similar to banks fronting you money for an 'instant' check deposit even though SWIFT takes days for the actual check to settle and can still bounce after you did your 'instant' deposit).
I'm not sure where you're getting your info.

What you failed to mention is that most HYSAs require consistent direct deposits, minimum opening deposits , and limited monthly withdrawals.
Plus you neglected to say that SPAXX is SIPC protected and has NO account restrictions .
HYSAs are not looking so good…..😵‍💫😵‍💫😵‍💫

SIPC is rarely even needed since a brokerage going out of business always results in another brokerage scooping up their assets. But as a fallback, SIPC is very safe (up to its limit, of course).

Refrain from duplicate posting, trolling, spamming, ranting, or posting memes. Do not abuse the reporting system. You can avoid having your post/comment removed as a rant/vent by simply being polite and asking for help.

Fidelity Brokerage Services LLC, Member NYSE, SIPC

SIPC does not insure money market funds against failure- SIPC coverage only comes in to play if a member broker-dealer was not segregating customer assets.
There is more risk to them and not every single one is made equal- the risk would be a rush for the gates in a financial crisis in which yes, you could lose principal as the fund liquidated to meet their outflow obligations.
FDIC explicitly insures against that in a way SIPC absolutely does not.

Can you explain why Morgan Stanley’s brokerage can offer Zelle as a broker-dealer by partnering with banks, but Fidelity cannot? On Morgan Stanley’s website: “Morgan Stanley maintains arrangements with JP Morgan Chase Bank, N.A. and UMB Bank, N.A. as NACHA-participating depository financial institutions for the processing of transfers on Zelle…Morgan Stanley Smith Barney LLC is a registered broker-dealer, member SIPC, and not a bank. Where appropriate, Morgan Stanley Smith Barney LLC has entered into arrangements with banks and other third parties to assist in offering certain banking-related products and services.”

Just put it in Vanguards MMF. If it’s greater than $500k, you can spread it across the major brokerages (ie Fidelity, Schwab, E trade, etc.)
MMFs are invested in high quality, short term securities like treasury bills and commercial paper. Even if the brokerage were to fail, the underlying securities are yours. If the brokerage were to fail in such a way that they lost track of the underlying securities, SIPC would cover up to $500k.
If Vanguard, fidelity, Schwab etc are failing AND SIPC is not paying out, your windfall is the least of your worries, unless the windfall is guns, seeds, and non perishable foods.

Are you familiar with taxable brokerage accounts? Very flexible as they let you invest in stocks, CD's, Treasuries...just about anything. If you buy CD's inside these accounts they are FDIC insured and the entire account has SIPC coverage. Very safe. These accounts also provide cash management features if you need checkwriting, debit card, bill payment etc. I looked at this page to learn more. [https://rolloveryour401k.com/fintech-101-using-a-taxable-brokerage-account/#more-4049](https://rolloveryour401k.com/fintech-101-using-a-taxable-brokerage-account/#more-4049)

My take - you are way overthinking this. FDIC is primarily designed to avoid "run on the bank" type panic, not to guarantee your funds against some sort of crazy "black swan" event. SIPC is basically to prevent brokerage from mismanaging your funds (not investing it as you requested) or going under - as you own underlying assets - treasury bills, bonds or even stocks/EFTs etc., if those lose value or default, that's not SIPC issue.
Both are designed to reassure investors/customers that these events are essentially highly unlikely and reinforce the trust in the banking/brokerage system. If we are ever in a situation when multiple large banks and brokerages are going under, there are much bigger underlying concerns than SIPC vs. FDIC limits.
Even during GFC, the FDIC's biggest test perhaps ever, even despite Washington Mutual disaster, it eventually all worked out for customers.

Fidelity, Schwab, etc have money market funds paying around 4%. National banks like Bank of America, Chase, etc have money market funds that pay below 1%. It's a big difference. Since you typically only get better returns for taking on risk, it would seem that SIPC backed fund are significantly more risky. But I've never heard anyone talk about the risks of such funds.

“Morgan Stanley maintains arrangements with JP Morgan Chase Bank, N.A. and UMB Bank, N.A. as NACHA-participating depository financial institutions for the processing of transfers on Zelle…Morgan Stanley Smith Barney LLC is a registered broker-dealer, member SIPC, and not a bank. Where appropriate, Morgan Stanley Smith Barney LLC has entered into arrangements with banks and other third parties to assist in offering certain banking-related products and services.” —Taken right from Morgan Stanley’s webpage

First off, this is probably the wrong sub for this. Kraken is a crypto platform. You’re not going to get much love in a BH group bringing up crypto.
However, you should read the fine print.
You have to have a Kraken subscription and be approved for their securities account. And this is for a taxable account not for tax advantaged accounts like a Roth. You have to leave your bonus $ there for a year and the company doing the bonus isn’t SIPC insured. If you live in NY or Maine it’s not allowed.
Again, trying to move $ into crypto platforms to gain 2% is def not going to be considered an act of simplicity so you’re correct it’s not a BH related question so don’t expect a lot of info on it or much support for this in this Sub.
Good luck!

If it's not a broker with SIPC insurance, it's a SCAM.

This post/comment was removed for violating rule #11 – Sharing Account Milestones.
Sharing account milestone - To assist our customers quickly during business hours, we’re limiting posts that share account milestones to weekends only. Those that are posted for the purpose of customer service are allowed anytime. If you share your milestone, please provide details like how long you’ve been saving, the types of investment strategy you used, your future plans for the funds, etc. Low effort posts will be removed.
Fidelity Brokerage Services LLC, Member NYSE, SIPC