What Happens To Your Investments If Your Broker Collapses?

What happens to your investments if a broker collapses? Also - what happens to an ETF or fund if the fund manager company collapses and what happens if the bank or custodian holding your cash or shares goes under?

☕️ JOIN MY PATREON - DISCORD, BONUS VIDEOS, TARGET PRICES, MODELS & MORE

💵 GREAT INVESTING APPS I USE

INTERACTIVE BROKERS (Global - Main investing app I use)

GET A FREE SHARE WORTH UP TO £100 WITH TRADING 212 (UK & Europe)
You need to sign up and make a deposit within 10 days to get a free share.

GET A $10 BONUS WITH LIGHTYEAR (UK & Europe)
You need to use promo code "Sasha" and the bonus is awarded after your first trade.

DISCLAIMER: Your capital is at risk.

DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.

DISCLAIMER: Trading 212 provides execution-only service. This video should not be construed as investment advice. Investments can fall and rise.

DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.

[greenockscatman]

Had to watch until the last 30 seconds to get the really good tips.

[Roughneck]

Luckily I’ve lost so much in my brokerage account that such scenarios as discussed in this video are no longer too worrisome

[VermaFinance]

Very timely upload. Taking advantage of the trend while giving value (opposed to the blatant clickbait of most finance YouTubers)

[justlisten]

Huge congrats on 100K Sasha. Been watching you for almost 2 years and you've come a long way. Keep up the great work. Do something you truly enjoy to celebrate. It's a big milestone. You deserve all of it.

[TheRetirementality]

I made this video yesterday and got a lot of mean comments telling me I'm stupid for making this video. It looks like your viewers are nicer than mine.

[dougmanck]

Great info as always. Another thing to remember is you get multiple $250k FDIC coverage if you have multiple account types: individual, joint, Roth IRA, etc.

[Ratgibbon]

Congratulations on 100K, Sasha, well deserved!

[pmapires]

The stocks might not be in your name at the custodian unless you have a custodian account. Most brokers offer low fees because they lend your shares for shorting, so the stocks are in the name of the broker at the custodian, but you are the beneficial owner in broker records. In case of fraud SIPC coverage is really helpful. SIPC is a huge advantage of US brokers relative to European brokers. Some Euro brokers have 20K protection with 10% haircut. US SIPC is the way to go.

[Alex-Popa]

Thank you for these explanations, very valuable info that not a lot of people are talking about.

Congrats on your 100k!

[lluke]

People getting bored of the hype channels love your videos seem very balanced and refreshing

[mikegeorge]

This guy is the best . Informative, in a language I understand and also makes me laugh at the same time.😂

[oldveeh]

Congratz on the 100k you earned it. And thanks for your well advised video and lack of constipated thumbnail !

[TickerSymbolYOU]

Congrats on 100K man. Love your commentary (even when I hate it)!

[cashninja]

Congrats on 100k subscribers, Sasha. Incredible hard work and well deserved

[AviShpayer]

Haha, I actually asked my bank that exact question back in February, they answered like you did. I was aware of the financial instability and started my first stock trading to keep my money out of the bank. I asked my bank what will happen if he was shutdown, are the stocks I buy are on my name or not. They said the stocks are in the name of the broker (the bank) and there are custodians to keep my shares so I can sell them through a different broker.

[Dr.JubairsFinance]

Congratulations on 100k well deserved!

[giok]

Thank you Sasha for the apocalyptic ending, I needed to hear some reassuring words! 😅

[rzslo]

This video went way over my head, still appreciate it!

[nicnac]

Love the ending 😅😅😅.... so true!!!! Packing my bugout bags and loading up all the ammo I could carry.

[diseasefreeforall]

Any shares loaned out under a brokerages fully paid lending programs in non-margin accounts are not SIPC insured. I've made tens of thousands of dollars lending shares out over the last few years, which is great, but there are risks and that some people may not be aware of.