While not insured by the Federal Government, accounts are insured, up to a limit, by the SIPC which is a private non profit set up by Federal Statute. Their website is here: http://www.sipc.org/ so, I do believe that the account is safe, within the limits.
While convienent to have accounts in one place, I also believe it is safer to have accounts spread out and to frequently check accounts. Many reason for this, all discussed in previous threads about access to accounts while in certain foreign countries, identity theft and security, other technical problems.
Overall, through, I have not problem with any of the large firm's safety, such as Merrill Lynch, Fidelity, Vanguard, etc. But it is worth keeping an eye open.
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