SIPC Brokers Guide
Updated May 09, 2021
SIPC Brokers
Securities Investor Protection Corporation, also known as SIPC, is a U.S.-based, non-profit corporation providing investment protections to U.S. investors, especially brokerage clients. The corporation provides protection against financial troubles or irregularities of incorporated SIPC-member brokers. The protection covers the loss of cash and securities.
Unlike regulated brokers, SIPC brokers aren't country-specific or nation-exclusive. Not only U.S. investors, but any non-U.S. investor who uses the services of SIPC brokers are subject to financial protection with the same treatment. That's why SIPC membership is a top-notch reference for investors when looking for brokerage services.
The Limited Protection
SIPC actually provides you with limited protection, perhaps more limited than you might have imagined. They cover the restoration of your cash and securities that are available in your accounts at the time of liquidation. In other words, SIPC only provides protection on the brokerage custody function. The protection doesn't cover the devaluation of your securities and other traded instruments if you've sold securities or instruments of no value, managed by the brokers. Consequently, claims of bad investment recommendations aren't covered either. You proceed with any investment decisions at your own risk, even when using SIPC members.
SIPC provides different kinds of financial protections in the same way the FDIC does. The value of securities isn't subject to SIPC's protection. It means that the dynamics of fluctuations in the market, let's say for stocks, are risks and potentials that you bear individually as an investor. Whenever the value of your instruments falls in the market for some reason, SIPC won't bail you out, and you can't claim any disadvantages for it. What is covered in SIPC protection includes cases where you are losing or missing your securities that were handled by SIPC-member brokers. Whenever possible, SIPC would replace your losses.
SIPC Protection
There are differences between common regulations and SIPC in protecting your investments in brokerage services. So, how does SIPC protection actually work? SIPC protects your money deposited in the form of securities that you have purchased and stored in your online account at that brokerage site. Basically, SIPC protects your money in relation to deposit transactions conducted between you, as the client, and the SIPC-member broker(s).
It should be noted that the cash or transactions related to the trading mechanisms aren't covered in SIPC's protection. SIPC protects money market mutual funds as securities, because they are usually considered to be cash. Any cash held under transactions between brokers and clients is protected by SIPC. These include when you purchase securities from the SIPC-member brokers. On the other hand, SIPC's securities purchase protection covers all transactions in any currency.
At this point, you can rest assured with what you've purchased from SIPC-member brokers, but you shouldn't expect protection against loss in your trading or investment decisions. Any investment advice you get from brokers should be researched further, and you should proceed with it at your own risk. At the very least, SIPC approval would definitely protect you from scam brokers that usually play in the areas of deposits, bonuses, and withdrawals.
SIPC Coverage
SIPC covers the protection of purchases in diverse securities. These include: mutual funds, bonds, stocks, certificates of deposit, Treasury securities, money market mutual funds, and so forth. It should be noted that SIPC doesn't protect some popular instruments, such as: Forex trading, futures contracts, investment contracts, and non-registered fixed annuity contracts. When it comes to futures contracts, SIPC can protect them if they are drafted in a special portfolio margin account. Generally speaking, SIPC only protects what is categorized as 'securities', as defined in the Securities Investor Protection Act. There are actually more securities covered in the act.
Online brokers are typically not securities-exclusive. As you might have known, online brokers may offer a diverse range of instruments, and securities are only one of them. At this point, even an online broker that has SIPC approval, not only offers securities, but also, other instruments like Forex, cryptocurrencies, CFDs, and so forth.
SIPC Brokers Verdict
You may have to check what's included as securities in the instruments hosted in those brokerage sites. If you have diverse portfolios, sharing both securities and non-securities assets, SIPC only protects the securities. Regardless of the advantages of using SIPC, investors should be aware of the limitations. If you want to diversify your portfolios, aside from securities that aren't covered in SIPC protections, then you'd need to find SIPC members with relevant licenses issued by regulatory bodies.
In general, SIPC provides valuable protection for investors against scammers and fraudulent transactions when purchasing securities in a brokerage service. SIPC protects your cash held under the reference of securities sales through any SIPC-member broker.
We've collected thousands of datapoints and written a guide to help you find the best SIPC Brokers for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best SIPC Regulated Investment Platforms below. You can go straight to the broker list here.
Reputable SIPC Brokers Checklist
There are a number of important factors to consider when picking an online SIPC Regulated Investment Platforms trading brokerage.
- Check your SIPC Regulated Investment Platforms broker has a history of at least 2 years.
- Check your SIPC Regulated Investment Platforms broker has a reasonable sized customer support of at least 15.
- Does the SIPC Regulated Investment Platforms broker fall under regulation from a jurisdiction that can hold a broker responsible for its misgivings; or at best play an arbitration role in case of bigger disputes.
- Check your SIPC Regulated Investment Platforms broker has the ability to get deposits and withdrawals processed within 2 to 3 days. This is important when withdrawing funds.
- Does your SIPC Regulated Investment Platforms broker have an international presence in multiple countries. This includes local seminar presentations and training.
- Make sure your SIPC Regulated Investment Platforms can hire people from various locations in the world who can better communicate in your local language.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
Our brokerage comparison table below allows you to compare the below features for brokers offering SIPC Regulated Investment Platforms.
We compare these features to make it easier for you to make a more informed choice.
- Minimum deposit to open an account.
- Available funding methods for the below SIPC Regulated Investment Platforms.
- What you are able to trade with each brokerage.
- Trading Platforms offered by these brokers.
- Spread type (if applicable) for each brokerage.
- Customer support levels offered.
- We show if each brokerage offers Micro, Standard, VIP and Islamic accounts.
Top 15 SIPC Regulated Investment Platforms of 2021 compared
Here are the top SIPC Regulated Investment Platforms.
Compare SIPC Regulated Investment Platforms min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are SIPC Regulated Investment Platforms. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more SIPC Regulated Investment Platforms that accept SIPC Regulated Investment Platforms clients
| Broker |
eToro
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webull
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m1finance
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cimbanque
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WhoTrades
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| Rating | |||||
| Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Securities Investor Protection Corporation (SIPC), Financial Industry Regulatory Authority (FINRA) | Financial Industry Regulatory Authority (FINRA), Securities Investor Protection Corporation (SIPC) | Financial Industry Regulatory Authority (FINRA), Securities and Exchange Commission (SEC), Securities Investor Protection Corporation (SIPC) | Cyprus Securities and Exchange Commission (CySEC), Financial Industry Regulatory Authority (FINRA), Securities Investor Protection Corporation (SIPC) |
| Min Deposit | 200 | 50 | No minimum deposit | 100 | 100 |
| Funding |
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| Used By | 20,000,000+ | 5,000+ | 10,000+ | 10,000+ | 10,000+ |
| Benefits |
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| Platforms | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Desktop,Android,iPhone/iPad,Mac | Android ,iPhone,Mac,iPade | Mac, Mirror Trader, Web Trader, Tablet & Mobile apps |
| Support |
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| Learn More |
Sign
Up with etoro |
Sign
Up with webull |
Sign
Up with m1finance |
Sign
Up with cimbanque |
Sign
Up with whotrades |
| Risk Warning | 67% of retail investor accounts lose money when trading CFDs with this provider. | Your capital is at risk | Your capital is at risk | Your capital is at risk | Losses can exceed deposits |
| Demo |
eToro Demo |
Webull Demo |
M1 Finance Demo |
CIM Banque Demo |
WhoTrades Demo |
| Excluded Countries | IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, US, PY, HN, GT, PR, NI, VG, AN, | UK, AU, SA, AL, DZ, AS, AD, AO, AI, AQ, AG, AR, AM, AW, AT, AZ, BS, BH, BD, BB, BY, BE, BZ, BJ, BM, BT, BO, BQ, BA, BW, BV, BR, IO, BN, BG, BF, BI, CV, KH, CM, CA, KY, CF, TD, CL, CX, CC, CO, KM, CD, CG, CK, CR, HR, CU, CW, CY, CZ, CI, DK, DJ, DM, DO, EC, EG, SV, GQ, ER, EE, SZ, ET, FK, FO, FJ, FI, FR, GF, PF, TF, GA, GM, GE, DE, GH, GI, GR, GL, GD, GP, GU, GT, GG, GN, GW, GY, HT, HM, VA, HN, HK, HU, IS, IN, ID, IR, IQ, IE, IM, IL, IT, JM, JP, JE, JO, KZ, KE, KI, KP, KR, KW, KG, LA, LV, LB, LS, LR, LY, LI, LT, LU, MO, MG, MW, MY, MV, ML, MT, MH, MQ, MR, MU, YT, MX, FM, MD, MC, MN, ME, MS, MA, MZ, MM, NA, NR, NP, NL, NC, NZ, NI, NE, NG, NU, NF, MP, NO, OM, PK, PW, PS, PA, PG, PY, PE, PH, PN, PL, PT, PR, QA, MK, RO, RU, RW, RE, BL, SH, KN, LC, MF, PM, VC, WS, SM, ST, SN, RS, SC, SL, SG, SX, SK, SI, SB, SO, ZA, GS, SS, ES, LK, SD, SR, SJ, SE, CH, SY, TW, TJ, TZ, TH, TL, TG, TK, TO, TT, TN, TR, TM, TC, TV, UG, UA, AE, GB, UM, UY, UZ, VU, VE, VN, VG, VI, WF, EH, YE, ZM, ZW, AX |
All SIPC Regulated Investment Platforms in more detail
You can compare SIPC Regulated Investment Platforms ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top SIPC Regulated Investment Platforms for 2021 article further below. You can see it now by clicking here
We have listed top SIPC Regulated Investment Platforms below.
SIPC Brokers Table of Contents
- SIPC Brokers Explained
- 6 Factors to Consider when Choosing SIPC Brokers
- Are Your SIPC Brokers Trusted And Established?
- Are The SIPC Brokers World Leading?
- What are the SIPC Brokers Commissions and Fees?
- What are the SIPC Brokers Funding and Withdrawl Methods?
- Find SIPC Brokers with Round-the-clock support?
- Make sure the SIPC Brokers Offer Comprehensive Trader resources?
- Why do SIPC Brokers need to be regulated?
- SIPC Brokers FAQ
- What are the best SIPC Regulated Investment Platforms brokers?
- What is the best SIPC Regulated Investment Platform broker?
- Related SIPC Brokers Reviews
- Related SIPC Brokers Alternatives
- Related SIPC Brokers Comparisons
SIPC Brokers Explained
Trading the financial markets with SIPC Brokers when conditions are volatile can be difficult, even for experienced traders.
Apart from the educational and other resources made available online, another important factor for traders to consider when looking for SIPC Brokers is the platform that a SIPC Brokers offer.
Choose SIPC Brokers that's at the forefront of innovation and generally considered an industry-leader.
To gain access to the financial markets, you'll need SIPC Brokers that you can rely on.
6 Factors to Consider when Choosing SIPC Brokers
Follow these five rules for selecting a broker that's right for you:
Are Your SIPC Brokers Trusted And Established?
Look for a broker that has a good track record/longevity in the market so that your strategy is your primary concern for navigating the markets. The top rated SIPC broker is eToro. Established in 2007, and in operation for 14 years eToro have a head office in Cyprus, UK.
eToro is regulated. This means eToro are supervised by and is checked for conduct by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) regulatory bodies.
Another top rated broker is Webull.
Webull was established 2017, and in operation for 3 years Webull have a head office in USA.
Webull is regulated. This means Webull are supervised by and is checked for conduct by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) regulatory bodies.
| Broker |
eToro
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webull
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m1finance
|
cimbanque
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WhoTrades
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| Year Established | 2007 | 2017 | 2008 | 1995 | 2006 | |
| Head Office | Cyprus, UK | USA | United States | Geneva | Cyprus | |
| Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Securities Investor Protection Corporation (SIPC), Financial Industry Regulatory Authority (FINRA) | Financial Industry Regulatory Authority (FINRA), Securities Investor Protection Corporation (SIPC) | Financial Industry Regulatory Authority (FINRA), Securities and Exchange Commission (SEC), Securities Investor Protection Corporation (SIPC) | Cyprus Securities and Exchange Commission (CySEC), Financial Industry Regulatory Authority (FINRA), Securities Investor Protection Corporation (SIPC) | |
| Used By | 20,000,000+ | 5,000+ | 10,000+ | 10,000+ | 10,000+ | 0+ |
| Negative balance protection | Yes | Yes | ||||
| Guaranteed Stop Loss | No | No | ||||
| Learn More | Visit eToro | Visit Webull | Visit M1 Finance | Visit CIM Banque | Visit WhoTrades | Visit |
| Risk Warning | 67% of retail investor accounts lose money when trading CFDs with this provider. | Your capital is at risk | Your capital is at risk | Your capital is at risk | Losses can exceed deposits |
Are The SIPC Brokers World Leading?
Choose a broker that's at the forefront of innovation and generally considered an industry-leader. eToro Segregates clients funds and offers over 2000 instruments. eToro offers both an online trading platform as well as a mobile platform giving clients easy access to markets.
In addition, eToro supports many popular third-party trading platforms enabling access to a variety of markets worldwide that can be traded with the assistance of expert advisors or a customizable automatic trading strategy. eToro is a world-leader when it comes to innovation and they are always looking at ways to improve and to maintain their competitive advantage.
Another good choice when looking for SIPC Brokers is Webull . Webull Segregates clients funds and offers over 100 instruments.
| Broker |
eToro
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webull
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m1finance
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cimbanque
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WhoTrades
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| Instruments Available | 2000 | 100 | 163 | 74 | 100 | |
| Platforms | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Desktop,Android,iPhone/iPad,Mac | Android ,iPhone,Mac,iPade | Mac, Mirror Trader, Web Trader, Tablet & Mobile apps | |
| Excluded Countries | IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, US, PY, HN, GT, PR, NI, VG, AN, | UK, AU, SA, AL, DZ, AS, AD, AO, AI, AQ, AG, AR, AM, AW, AT, AZ, BS, BH, BD, BB, BY, BE, BZ, BJ, BM, BT, BO, BQ, BA, BW, BV, BR, IO, BN, BG, BF, BI, CV, KH, CM, CA, KY, CF, TD, CL, CX, CC, CO, KM, CD, CG, CK, CR, HR, CU, CW, CY, CZ, CI, DK, DJ, DM, DO, EC, EG, SV, GQ, ER, EE, SZ, ET, FK, FO, FJ, FI, FR, GF, PF, TF, GA, GM, GE, DE, GH, GI, GR, GL, GD, GP, GU, GT, GG, GN, GW, GY, HT, HM, VA, HN, HK, HU, IS, IN, ID, IR, IQ, IE, IM, IL, IT, JM, JP, JE, JO, KZ, KE, KI, KP, KR, KW, KG, LA, LV, LB, LS, LR, LY, LI, LT, LU, MO, MG, MW, MY, MV, ML, MT, MH, MQ, MR, MU, YT, MX, FM, MD, MC, MN, ME, MS, MA, MZ, MM, NA, NR, NP, NL, NC, NZ, NI, NE, NG, NU, NF, MP, NO, OM, PK, PW, PS, PA, PG, PY, PE, PH, PN, PL, PT, PR, QA, MK, RO, RU, RW, RE, BL, SH, KN, LC, MF, PM, VC, WS, SM, ST, SN, RS, SC, SL, SG, SX, SK, SI, SB, SO, ZA, GS, SS, ES, LK, SD, SR, SJ, SE, CH, SY, TW, TJ, TZ, TH, TL, TG, TK, TO, TT, TN, TR, TM, TC, TV, UG, UA, AE, GB, UM, UY, UZ, VU, VE, VN, VG, VI, WF, EH, YE, ZM, ZW, AX | ||||
| Forex pairs offered | 50 | 0 | 15 | |||
| Forex pairs offered | 50 | 0 | 15 | |||
| Major forex pairs | Yes | Yes | No | No | Yes | |
| Minor forex pairs | Yes | Yes | No | No | ||
| Exotic forex pairs | Yes | No | No | No | ||
| Cryptocurrencies (availability subject to regulation) | Yes | No | No | No | No | |
| Commodities Offered | 31 | 0 | 0 | 0 | 0 | |
| Metals | Yes | Yes | No | No | Yes | |
| Energies | Yes | Yes | No | No | Yes | |
| Agricultural | Yes | Yes | No | No | No | |
| Stocks Offered | 2042 | 100 | ||||
| UK Shares | Yes | No | No | No | No | |
| US Shares | Yes | Yes | No | No | Yes | |
| German Shares | Yes | No | No | No | No | |
| Japanese Shares | Yes | No | No | No | Yes |
What are the SIPC Brokers Commissions and Fees?
Ensure that your broker is transparent with fees and those dues are competitive.
The best rated SIPC broker eToro offers competitive offers for Stocks, Commodities, Forex, CFDs, Social Trading, Indices, Cryptocurrency, Index Based Funds, Exchange Traded Funds (ETF). eToro minimum deposit is 200.
Another top rated SIPC broker Webull offers Stocks, Options, ETFs, ADRs. Webull minimum deposit is 50. Please note that any cryptocurrency availability with any broker is subject to regulation.
| Broker |
eToro
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webull
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m1finance
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cimbanque
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WhoTrades
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| Min Deposit | 200 | 50 | 0 | 100 | 100 | |
| Withdrawl Fees | Yes | varies | varies | varies | 0.12%- 2% | |
| Inactivity Fees | Yes | No | Yes | |||
| Deposit Fees | No | No | Varies | |||
| CFD Commission Fees | No | No | 5%- 6% |
What are the SIPC Brokers Funding and Withdrawal Methods?
When dealing with SIPC Brokers having convenient funding and withdrawl facilities makes the trading process and your trading experience smoother.
| Broker |
eToro
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webull
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m1finance
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cimbanque
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WhoTrades
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| Bank transfer | Yes | Yes | No | Yes | Yes | |
| Credit Cards | Yes | Yes | Yes | No | Yes | |
| Paypal | Yes | No | No | No | No | |
| Skrill | Yes | No | No | Yes | Yes | |
| Payoneer | No | No | No | No | ||
| Neteller | Yes | No | No | Yes | Yes |
Find SIPC Brokers with Round-the-clock support?
Customer service is very important when dealing with SIPC Brokers.
When investing and dealing with brokers customer support can be a range of customer services to assist customers in making cost effective and correct use the brokers services. It can include assistance in installation, training, troubleshooting, upgrading, and cancelation of a product or service.
SIPC Brokers customer support can include Phone answering services, Live chat support and Email customer service support.
eToro support a wide range of languages including English, German, Spanish, French, Italian
Webull support a wide range of languages including English, Chinese,
eToro and Webull offer support where clients are able to call or contact the helpdesk via email or a chat service.
| Broker |
eToro
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webull
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m1finance
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cimbanque
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WhoTrades
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| Support |
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| Languages | English, German, Spanish, French, Italian | English, Chinese, | English, Spanish, Czech, Chinese, German, French, Italian, Polish, Portuguese, Romanian, Slovenian,Hindi, Hebrew, Arabic, Russian | English, Spanish, Czech, Chinese, German, French, Italian, Polish, Portuguese, Romanian, Slovenian,Hindi, Hebrew, Arabic, Russian | ||
| Learn More | Visit eToro | Visit Webull | Visit M1 Finance | Visit CIM Banque | Visit WhoTrades | Visit |
| Risk Warning | 67% of retail investor accounts lose money when trading CFDs with this provider. | Your capital is at risk | Your capital is at risk | Your capital is at risk | Losses can exceed deposits |
Make sure the SIPC Brokers Offer Comprehensive Trader resources?
Make sure your broker offers free resources like analysis, education and risk-management tools. With a wealth of knowledge from top analysts, eToro and Webull work together to bring the latest news and insights to traders.
For most traders, the first – and sometimes only – concern is pursuing their 'edge'. While that is surely important, along with sound money management habits, to navigating the markets; that step alone does not represent the full preparation. As each trader dives into this important venture, it is important not to forget the most rudimentary yet crucial steps such as selecting the best broker to access the markets.
Why do SIPC Brokers need to be regulated?
A regulated SIPC broker lowers your risk.
Broker regulation protects consumers. Too little broker regulation can lead to poor services and possibly financial harm.
SIPC brokers are regulated to stop fraud. The agent's working capital and clients funded account have to be separated. This amounts to fraud if client money is used to conduct the business. Regulation is required to make sure this does not happen.
SIPC Brokers List
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Desktop,Android,iPhone/iPad,MacCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Android ,iPhone,Mac,iPadeCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account