Account Protection

Customer Securities

Customer securities—such as stocks and bonds that are fully paid for or excess margin securities—are segregated from broker-dealer securities in compliance with the U.S. Securities and Exchange Commission Customer Protection Rule. This is a legal requirement for all U.S. broker-dealers. In the unlikely event of insolvency of a broker-dealer, these segregated assets are not available to general creditors and are protected against creditors' claims. There are reporting and auditing requirements in place by government regulators to help ensure all broker-dealers comply with this rule.

Member of the Securities Investor Protection Corporation (SIPC)

Charles Schwab & Co., Inc., member of SIPC, which protects cash and securities of customers held by its members or affiliates of its members up to $500,000 (including $250,000 for claims for cash, excluding cash held in Singapore Segregation Sweep cash feature). Explanatory brochure available upon request or at

Additional protection through Lloyd's of London and other London insurers

Additional brokerage insurance is provided to Charles Schwab accounts through underwriters in London. Schwab's coverage with Lloyd's of London and other London insurers, combined with SIPC coverage, provides protection of securities and cash up to an aggregate of $600 million, and is limited to a combined return to any customer from a Trustee, SIPC, and London insurers of $150 million, including cash of up to $1,150,000 (excluding cash held in Singapore Segregation Sweep cash feature). This additional protection becomes available in the event that SIPC limits are exhausted.

Contact Schwab for more details on automatic customer account protection.