FDIC & SIPC Insurance Protection
With TD Ameritrade, your money is with one of the world’s largest discount brokerage firms, with local branches nationwide. With that comes a commitment to both excellent client service and account information protection. While no security system is absolutely impenetrable, TD Ameritrade has made substantial investments in leading-edge security software, systems, and procedures—and is constantly reviewing, refining, and upgrading its infrastructure.
Certificates of Deposit (CDs) purchased through TD Ameritrade are issued by banks insured by the Federal Deposit Insurance Corporation (FDIC). In addition, cash in your account can be held in a TD Ameritrade FDIC Insured Deposit Account (IDA). Balances in an IDA are held at TD Bank, N.A. and/or TD Bank USA, N.A., where they are insured by the FDIC against bank failure for up to $250,000 per depositor, per bank. TD Bank, N.A. and TD Bank USA, N.A. are affiliates of TD Ameritrade. Each bank will have separate FDIC coverage of up to $250,000 per depositor for up to $500,000 total per IDA depositor.
TD Ameritrade, Inc. is a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure is available on request at SIPC.org
Additionally, TD Ameritrade provides each client $149.5 million worth of protection for securities and $2 million of protection for cash through supplemental coverage provided by London insurers. In the event of a brokerage insolvency, a client may receive amounts due from the trustee in bankruptcy and then SIPC. Supplemental coverage is paid out after the trustee and SIPC payouts and under such coverage each client is limited to a combined return of $152 million from a trustee, SIPC and London insurers. The TD Ameritrade supplemental coverage has an aggregate limit of $500 million over all customers. This policy provides coverage following brokerage insolvency and does not protect against loss in market value of the securities.