Account Protection & Security
Customer securities—such as stocks and bonds that are fully paid for or excess margin securities—are segregated from broker-dealer securities in compliance with the U.S. Securities and Exchange Commission Customer Protection Rule. This is a legal requirement for all U.S. broker-dealers. In the unlikely event of insolvency of a broker-dealer, these segregated assets are not available to general creditors and are protected against creditors' claims. There are reporting and auditing requirements in place by government regulators to help ensure all broker-dealers comply with this rule.
Member of the Securities Investor Protection Corporation (SIPC)
Schwab is not authorised to carry on designated investment business in the U.K., but is regulated under U.S. securities law. This means that all or most of the protections provided by the U.K. regulatory system do not apply, but U.S. securities protections do. Although there is no coverage by the U.K. Financial Services Compensation Scheme, there is coverage under the U.S. SIPC scheme.
Member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.
Additional protection through Lloyd's of London and other London insurers
Additional brokerage insurance is provided to Schwab accounts through underwriters in London. Schwab's coverage with Lloyd's of London and other London insurers, combined with SIPC coverage, provides protection of securities and cash up to an aggregate of $600 million, and is limited to a combined return to any customer from a Trustee, SIPC, and London insurers of $150 million, including cash of up to $1,150,000. This additional protection becomes available in the event that SIPC limits are exhausted.
Safe Internet Trading
Learn how Schwab works to keep your account safe here.