> What happens if your trading platform goes bankrupt?

What happens if your trading platform goes bankrupt?

Posted at: 2014-12-05 
Your stock and your money must be held in client account separate from the company's money. So the broker going bust (it is called 'being hammered' will not (should not) affect their clients.

There could be a delay in distributing client's money and/or shares.

Basically according to the regulator's rules brokers have to maintain minimum liquidity ratios, just like banks. It is unlikely that they would go bust as they are mainly acting as agents rather than as Pricipals

Why do so many people on Yahoo Investing worry about hypotheticals and stupid details that have absolutely nothing to do with whether you make money? The major trading platforms are not going under, just pick one of several reliable ones.

There is insurance available. You want to make dad gum certain that your brokerage is covered. If you don't have coverage, under your conditions, it is tough noogies.

Let's say hypothetically that your trading platform went bankrupt, what would happen to your account, and the stocks that you own?

By trading platform, I mean ETrade, Charles Schwab, TD Ameritrade, Tradeking, etc. etc.

Thanks.