online brokerage. is it safe?, page-2

Cash can be at risk depending on how/where it is held.

Some brokerages use a 3rd party cash trust account, eg Amscot use MQG. And some kinds of settlement accounts have small guarantees, others do not.

Bell for example invests spare cash in trading accounts in it's own corporate debt instruments as far as I can ascertain, which is probably not as safe as having it in a 3rd party settlement/trust account.

As for stock, you need to use a brokerage where the stock you own is registered in your name using your Chess HIN (not some dodgy sub-HIN). If you are getting monthly statements from Chess showing share movements then your stock is probably registered in your name, so as far as I know it is 100% safe (subject to outright third party theft).

Any trade not settled when a broker goes bust obviously places the cash/shares from recent trades at risk.

Obviously anything purchased on Margin is not safe as there is normally a lien over them.

Anyone else care to comment?