SIPC
SIPP INDUSTRIES INC NEW
stockOTC

Honestly it comes down to what problem you're actually solving. If it's just "spread the risk of fidelity vanishing" that's not really a thing, SIPC covers you either way, so I'd rather keep it simple and consolidate. The only time I'd split is if a second broker gives you something fidelity doesn't, like a specific fund family or a cash sweep rate that's actually better, otherwise it's just more tax forms in february for no real benefit.

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Banks and brokerages operate differently FDIC is for banking ; there is SIPC for brokerages but they are very different In simple terms banks commingle money . There is not real difference between the banks money they use to pay bills, pay employees and your money you deposit with them. It all goes into the same pile This is sort of dangerous because it means if the bank is bad at being a bank and loses money , your money is also gone. What is why banks are heavily regulated and FDIC insurance exists Brokerages do not operate like that; there is a clear segregation between the brokerage assets and your assets If a brokerage is bad at being a brokerage and loses money, they cannot use your assets to pay their bills, their creditors cannot lay claim to your assets If a brokerage fails your assets are generally safe and will just be transferred SIPC exists for basically fraud. Your brokerage does commingle assets (what is illegal and fraud) or your brokerage says they bought stock but really didn't and pocketed the money (What is also illegal and fraud)

What would you consider a large sum? Most brokers have excess of SIPC insurance for insolvencies. Growth of your contributions is irrelevant based on your choice of broker. What matters is your portfolio construction and choice of investment manager if you use specific funds.

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Basically insured against loss by the SIPC.

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Hedgies have nothing to do with you and your brokerage orders, unless they buy your orders(payment for order flow). Ultimately that is between your broker and the hedgies/market makers, unless of course if you use a shitass broker like robinhood. At the end of the day, your deals are commitments from your broker. You are covered by SIPC up to half a million anyway if you use a decent broker. Monster sized brokers have tremendous assets to backup their customer relationships. I know on Reddit that everything financial is a conspiracy against us poors, but in reality it is a few limited billionaire scumbags and their influence on the SEC and OCC, and their manipulation is mostly about augmenting price discovery. At the end of the day, do business with large reputable brokers and you will be just fine. That’s about all you can control. If you really think our beloved stock is going to 500k each share, then spread your relationship out over all of the big brokers, but I think that is not necessary. If it gets that bad, the big ones will all get bailed out anyway just like 2007. Invest in peace.

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It helps. IB is a legitimate broker, where user funds are protected up to $500K by the SIPC, the kind of safety most crypto OTC brokers such as Binance or Kraken would never offer.

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Fair on rates moving, but “Fidelity can lose you money too” is a different risk. If Fidelity goes under, your shares are still yours, SIPC and all that. If CoinDepo goes under, you’re an unsecured creditor of a Panama company. I still use them, I just don’t pretend those are the same thing.

why do you want to keep all eggs in one place - at least keep of them elsewhere ... there are more things that can happen other than those that FDIC/SIPC/excess cover ... for example you can be locked out of your accounts for a while, etc

Welcome to the sub! I know account security is a concern to investors, and I'll be happy to help explain what we have in place. As Fidelity is not a bank, we don't have Federal Deposit Insurance Corporation (FDIC) insurance, but broker-dealers have Securities Investor Protection Corporation (SIPC) insurance. This insurance covers all accounts at Fidelity, and can cover multiple accounts per individual if they have different types of accounts. Some examples include having an individual account, a joint account, and an IRA. Each account would receive $500k in protection for securities in the account (stocks, bonds, mutual funds, etc.), including a $250k limit for cash held in the account. If the account value exceeds that, we have excess SIPC coverage, which provides even more. You can learn more about what we offer and what this coverage covers at the following links. [Safeguarding your Accounts](https://www.fidelity.com/why-fidelity/safeguarding-your-accounts) [What is SIPC Coverage](https://www.fidelity.com/learning-center/smart-money/sipc) We're a great resource for all things Fidelity, so please don't be a stranger and bring your questions here!

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*

Fidelity and most brokerages have private excess SIPC insurance.

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*

I would never consider putting all my eggs in one basket. Ever. Why risk it? FDIC is for banks. SIPC is for brokers. Look it up and read what it does and doesn't protect. I'm sure you can find some of this info on the website. Searching this sub will also find multiple posts about this and the problems with account freezes and closures that people have experienced.