stock broker - single point of failure?

Microsoft / Eng
Dadella

Go to company page Microsoft Eng

Dadella
Aug 15, 2021 14 Comments

funds sitting in various fidelity accounts make up 80+% of my portfolio. this includes the regular brokerage account where my RSUs vest, 401k and my roth ira...i'm sure this is the case for a lot of people...isn't this too much of a risk to depend on one entity? how do people deal this this?

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TOP 14 Comments
  • What are you worried about?
    Aug 15, 2021 10
    • Google / Eng
      seacar

      Go to company page Google Eng

      seacar
      doubleE is right, look into ACATS transfers (not trolling this time 😁)
      Aug 15, 2021
    • New
      schoop

      New

      schoop
      OP’s TC because it isn’t listed
      Aug 15, 2021
  • Brokerages are usually under SPIC which provides insurance up to $500K ($250K in cash). Banks have FDIC for up to $250K. I’d recommend never keeping more than $250K in a single account, brokerage or bank.
    Aug 15, 2021 0
  • Groupon
    angelica3

    Go to company page Groupon

    angelica3
    They manage $10T assets and have 25M customers. I would not be worried
    Aug 15, 2021 0
  • Amazon / Eng
    wawY45

    Go to company page Amazon Eng

    PRE
    Apple
    BIO
    I'm a no-man.
    wawY45
    Fidelity is one of the few brokerages that doesn't charge any stock transfer fees, others charge $50 to $150 for each outgoing transfer, but the benefit is that you don't have to sell any assets for the move.

    I plan to diversify to IBKR eventually once there's more to diversify; plus I've already been using Schwab prior to Fidelity.
    Aug 15, 2021 0