Client accounts are held at Charles Schwab & Co., Inc., member SIPC. In this role, Schwab provides trade execution, clearing and settlement, and acts as custodian for your account assets.
Schwab is committed to staying financially strong, and we are confident in our ongoing financial health. We run our business with a sound capital structure and position our company for long-term strength and stability. Learn more about the account protections Schwab offers:
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 SEC's Customer Protection Rule. This is a legal requirement for all 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.
SIPC® account protection
- Protection for securities and cash by the Securities Investor Protection Corporation (SIPC): Accounts of Charles Schwab & Co., Inc. (including those held by clients of investment advisors with Schwab Institutional®) are insured by SIPC for securities and cash in the event of broker-dealer failure.
- SIPC provides up to $500,000 of protection for brokerage accounts held in each separate capacity (e.g., joint tenant or sole owner), with a limit of $250,000 for claims of uninvested cash balances.
More information about SIPC coverage is available at www.sipc.org.
Additional protection through Lloyd's of London and other London insurers
Additional brokerage insurance—in addition to SIPC protection—is provided to Charles Schwab & Co., Inc. 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. This additional protection becomes available in the event that SIPC limits are exhausted.
Clients of Oxford hold their idle cash in Charles Schwab Bank Deposit Accounts. The Deposit Accounts are eligible for FDIC insurance. The FDIC—or Federal Deposit Insurance Corporation—is a U.S. federal agency that protects depositors against the loss of deposit accounts (such as checking and savings) if an FDIC-insured bank fails.
Learn more about FDIC coverage.