Schwab Alliance

Charles Schwab and Co. is the custodian that we recommend for our clients. You can access their website here.

We feel confident using Charles Schwab because of their financial strength and the protections that they put in place to safeguard client assets.  Here is how they describe it:

“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. We've taken appropriate actions to help give you peace of mind about the security of your accounts with the following account protections:

Customer Securities

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.

FDIC Coverage

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

Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value
Charles Schwab & Co., Inc., and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.

Schwab Advisor Services is a division of Charles Schwab & Co., Inc. Investment products offered by Charles Schwab & Co., Inc., member SIPC, are not insured by the FDIC, are not deposits or obligations of Charles Schwab Bank and are subject to investment risk, including the possible loss of principal invested. Deposit and lending products and services are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender.“