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What Happens If Tastytrade Goes Bankrupt?
What happens to customer stocks and money if Tastytrade goes bankrupt? Is Tastytrade out of business?
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What Happens If Tastytrade Goes Under?
Tastytrade is a relatively new brokerage firm. If you’re concerned about the stability of this organization and what might happen if Tastytrade goes bankrupt, keep reading!
About Tastytrade
The founders of Tastytrade, Tom Sosnoff and Scott Sheridan, started their careers as traders on the Chicago Board Options Exchange. Later, they created a popular trading platform called thinkorswim in 1999, which they developed over the next decade before selling it. They launched Tastytrade in 2011 with the goal of transforming how people interact with the financial markets. Today, Tastytrade is known for its innovative approach to options trading and has also introduced futures products and a dedicated learning network.
Presently, Tastytrade offers a unique options trading experience and runs a learning network under the same name.
Tastytrade Promotion
Open TastyTrade Account
What Happens if Tastytrade Goes Bankrupt?
Tastytrade is regulated by FINRA and the SEC, with specific registration numbers for each. This means your investments are protected by SIPC insurance, which covers up to $500,000 per customer, including up to $250,000 in cash.
Remember, SIPC protection has a limit per customer, not per account. Opening more accounts with Tastytrade doesn’t increase the insurance limit.
Additionally, Tastytrade’s clearing firm, Apex Clearing, provides extra insurance that covers beyond SIPC limits, up to $37.5 million, including up to $900,000 in cash.
Tastytrade and Competitors
Final Thoughts
Like any private company, Tastytrade could face financial difficulties if it fails to manage its expenses. However, there are no current signs that Tastytrade is nearing this situation.
Ultimately, thanks to regulations and insurance from SIPC, plus additional private insurance, your investments and cash with Tastytrade should be secure.
Tastytrade Promotion
Open TastyTrade Account
Updated on 7/5/2024.
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