Is cash in a brokerage account safe


But you never authorized those transactions - instead, an identity thief did, and that thief has now stolen your cash as well as your personal information. Like many investors, you may enjoy some of the conveniences of an online brokerage account, like checking your brokerage account information at any time of day or night, buying and selling securities, or even transferring money between your brokerage account and another account.

But if you don't take steps to protect your personal information when you go online, you could be telling your own story of identity theft. Many identity thieves use malicious software programs to attack vulnerable computers of online users. These software programs can monitor your computer activity and send information back to the thief's computer.

Sometimes, these programs will log your key strokes, which allows identity thieves to easily obtain username and password information for any of your online accounts, including your brokerage account.

Other identity thieves " phish " for your personal information. Sometimes fraudsters will use phishing scams to try to get you to download keystroke logging or other malicious software programs unsuspectingly. But not all identity thieves have gone "high tech. You'll need to protect yourself against identity thieves, whether hackers, phishers, or snoops, when you use your online brokerage account. Here are a few suggestions on ways to keep your personal information and money more secure when you go online:.

Sometimes, it can be extraordinarily difficult to determine whether someone has stolen your identity. This is the maximum excess of SIPC protection currently available in the brokerage industry. Both SIPC and excess of SIPC coverage is limited to securities held in brokerage positions, including mutual funds if held in your brokerage account and securities held in book entry form.

Certain assets are not eligible for SIPC protection. Among the assets typically not eligible for SIPC protection are commodity futures contracts, precious metals, as well as investment contracts such as limited partnerships , and fixed annuity contracts that are not registered with the U.

Securities and Exchange Commission under the Securities Act of If you own Fidelity mutual fund shares directly, not through a brokerage account, your investment is in assets that are the property of the funds, not Fidelity.

The funds and Fidelity are separate and distinct legal entities. The assets of each Fidelity fund are held by its custodian separate from any other assets belonging to Fidelity or any other fund. Neither Fidelity nor its creditors may access the funds' assets to satisfy financial obligations of Fidelity.

As a provider of recordkeeping services for workplace retirement plans, including k s and b s, Fidelity's services are governed by federal laws.

These laws generally require retirement plan assets to be held in trust, segregated from the employer's or recordkeeper's assets. In most situations, when assets are held in trust, they are protected from creditors in the event that an employer or recordkeeper has financial problems.

Skip to Main Content. The assets of each Fidelity fund are held by its custodian separate from any other assets belonging to Fidelity or any other fund.

Neither Fidelity nor its creditors may access the funds' assets to satisfy financial obligations of Fidelity. As a provider of recordkeeping services for workplace retirement plans, including k s and b s, Fidelity's services are governed by federal laws.

These laws generally require retirement plan assets to be held in trust, segregated from the employer's or recordkeeper's assets. In most situations, when assets are held in trust, they are protected from creditors in the event that an employer or recordkeeper has financial problems. Skip to Main Content. Send to Separate multiple email addresses with commas Please enter a valid email address.

Your email address Please enter a valid email address. Safeguarding Your Accounts Helping protect our customers' assets is an important part of our commitment to providing the best service possible. Other Types of Protection. Transfer Accounts to Fidelity We can help you move your accounts to Fidelity quickly and efficiently.

For more information related to the FDIC, including coverage limits and rules, please visit www. Please enter a valid ZIP code.