Is my Titan account insured by FDIC or SIPC?
November 22 2024 9:25pm • Est. Read Time: 2 MINThere are two different kinds of coverage that may be relevant to your Titan account: FDIC and SIPC.
FDIC
To receive FDIC insurance, you must opt in to Titan’s Cash Sweep Program. If you have opted into our Cash Sweep Program, your cash holdings at Titan are covered by FDIC while held at a program bank. Apex Clearing Corporation, the program manager, at its discretion, selects one or more of its program banks at which to place your deposits. If you have not opted into our Cash Sweep Program, please see SIPC coverage information below regarding your cash holdings coverage. FDIC covers accounts up to $250,000 in deposits per account owner/ownership category at each insured bank while the funds are deposited at an insured program bank. Since our Cash Sweep Program utilizes multiple program banks, your funds can be spread across the program banks while swept for a total coverage of up to $5,000,000. Once at the program bank, your cash will be covered by FDIC up to the coverage amount. This includes your Buying Power balance as well as strategic cash holdings within our managed investment strategies. You can find more information about FDIC coverage here.
SIPC protects the securities and cash held within your brokerage account in the event of brokerage firm failure. This means that each type of brokerage account held with Titan is covered up to $500k (up to $250k in cash). In short, you could have $500k coverage on your individual Titan account, and separately also have $500k coverage on your traditional IRA, $500k coverage on your Roth IRA, etc. Please note that if you have both a managed Individual account as well as a Personal Trading account, these two accounts are considered to be the same type for the purpose of SIPC coverage, meaning that these accounts will together be covered for a total of $500k. SIPC insurance does not protect against market losses or guarantee investment value. As a reminder, if you’re opted into the Cash Sweep Program, any cash held at a program bank will be insured under FDIC, not SIPC. You can learn more about SIPC insurance here.