Tradier Investor Protection

Broker FAQ 📈
1

The BrokerChooser comparison says for Tradier: “Investor Protection - Yes”

But on their website bottom disclaimer it says:

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2

Hey,

Thanks for your question! Let me clarify the information for you. The statement on Tradier’s website, “Not FDIC Insured - No Bank Guarantee”, is a standard disclosure that applies to investment products in general. It simply means that the investments in your brokerage account (like stocks, ETFs, or options) are not covered by the Federal Deposit Insurance Corporation (FDIC), which only protects deposits in bank accounts (e.g., savings accounts or CDs).

However, this does not mean you are without protection. Tadier is a member of SIPC (Securities Investor Protection Corporation), which provides investor protection. SIPC covers your brokerage account up to $500,000 (including $250,000 for cash) in case Tradier fails financially. This ensures that your cash and securities are protected against the firm’s insolvency, though it does not cover losses from market fluctuations or investment performance.

In short:

  • Your investments are not FDIC insured because they are not bank deposits.
  • Your account is protected by SIPC, offering strong safeguards for your cash and securities in the event of broker failure.

I hope this clears up the confusion! Please let me know if you have any further questions.

Best wishes,
Andris