Investment Account Protection
Scottrade is a member of the Securities Investor Protection Corporation (SIPC), which protects eligible accounts of its members up to $500,000 (including $100,000 for claims for cash*). A brochure with the details of SIPC's protections is available at www.sipc.org.
Scottrade has also purchased additional protection from Aon of $24.5 million (an additional $900,000 in claims for cash) to pay amounts in addition to those returned in a SIPC liquidation, subject to an aggregate limit of $100,000,000. Total Account Protection is $25,000,000, including up to $1,000,000 in cash. This coverage does not protect against loss of the market value of securities. SIPC coverage is not the same as the insurance on bank accounts provided by the Federal Deposit Insurance Corporation (FDIC).
* In order for cash to be covered by SIPC, cash held in an account must be the for the purpose of, or as a result of, securities transactions. Cash held in a securities account for the purpose of earning interest, which was not the result of a securities transaction, may not be covered by SIPC.