Fidelity Investments is a well-established financial services company that offers a range of investment products and services. The Securities Investor Protection Corporation (SIPC) provides protection for Fidelity's customers.
Fidelity Investments is a SIPC member, which means that customer accounts are protected up to $500,000, including a $250,000 limit for cash claims. This protection covers securities and cash in customer accounts.
Fidelity's SIPC membership is a key benefit for customers, providing an added layer of security and peace of mind.
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Account Coverage and Protection
Fidelity brokerage accounts are covered by SIPC, including money market funds held in a brokerage account since they are considered securities.
SIPC provides up to $500,000 of protection for brokerage accounts held in each separate capacity, such as joint tenant or sole owner. This protection is not limited to just $500,000 of invested securities, but rather a pro-rata share of all client assets recovered in liquidation, plus up to $500,000 from SIPC to make up any difference.
Most broker-dealer failures happen with no securities missing, and according to SIPC, 99% of eligible investors got all of their investments back in the failed brokerage firms' cases that it has handled over the past 50 years.
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