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The Short Answer

What Happens if My Broker Goes Bust?

When the unthinkable occurs, the Securities Investor Protection Corporation steps in to help investors.


Note: This article is part of Morningstar's November 2013 Investor Starter Kit special report. An earlier version of this article appeared March 27, 2012.

Question: I know that the FDIC insures the funds in my bank account, but what about funds in my brokerage account? What would happen to them if my brokerage went bankrupt?

Adam Zoll does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.