How is my Stockal account protected?
The US brokerage ecosystem recommends every investor's account be insured.
Your trading account for international investments via Stockal is held with the US brokerage firm DriveWealth. It is a member of the Securities Investor Protection Corporation (SIPC), whose regulations include:
- Protection against the loss of cash and securities (such as stocks and bonds) held by a customer during the financial troubles of a SIPC-member brokerage firm.
- Protection currently includes securities and cash of up to USD 500,000 held in an investor's trading account, with a cash limit of USD 250,000.
- A non-US citizen with an account at an SIPC-member brokerage firm is treated the same as a US citizen/ resident.
What SIPC does not protect you from:
It is important to note that SIPC is not applicable to general losses in the stock market.
SIPC protection is not the same as cash protection at a Federal Deposit Insurance Corporation (FDIC) insured banking institution because SIPC does not protect the value of any security.
SIPC does not protect investors against the decline in the value of their securities.
SIPC does not protect investors who are sold worthless stocks and other securities.
SIPC does not protect investors against losses incurred due to a broker's bad investment advice, or for recommending inappropriate investments.