Account Protection

Trading Direct is a division of York Securities, Inc., who is a member of the Securities Investor Protection Corporation (SIPC). 

As a member of the Securities Investor Protection Corporation (SIPC), funds are available to meet customer claims up to a ceiling of $500,000, including a maximum of $250,000 for cash claims. For additional information regarding SIPC coverage, including a brochure, please contact SIPC at (202) 371-8300 or visit www.sipc.org.

Accounts are carried by the clearing firm, Axos Clearing, LLC, member SIPC.

What kind of SIPC and Excess SIPC coverage does Axos Clearing offer for client accounts?

Safeguarding Client Assets and Information with Axos Clearing

Doing business with a trusted partner is the first step in any successful relationship. Your information is guarded and protected. Axos Clearing maintains physical, electronic and procedural safeguards in accordance with legal standards and established security procedures.

Axos Clearing is a member of the Securities Investor Protection Corporation (SIPC), and provides account protection up to $100 million for correspondent customer assets held by Axos Clearing. The first $500,000 of coverage (including up to $250,000 for cash balances) per client is provided by SIPC as defined by SIPC Rules (www.sipc.org). Axos Clearing’s policy with Lloyd’s of London (www.lloyds.com) provides additional “excess SIPC” account coverage up to $99.5 million.

With the combination of SIPC coverage and Lloyd’s of London insurance, accounts held by Axos Clearing are protected up to a total of $100 million per client, including up to $1.15 million for cash balances with an aggregate limit of $100 million.

Account protection coverage applies when an SIPC member firm fails financially and is unable to meet its obligations to securities clients. It does not protect against losses from the rise and fall in the market value of investments, and it does not cover all assets.

For more information visit www.sipc.org or www.lloyds.com.

Information contained in above table was obtained from https://www.axosclearing.com/safeguarding-client-assets-and-information/, and is © Axos Clearing LLC. All rights reserved. Axos Clearing LLC is a wholly owned subsidiary of Axos Financial Inc.

About the SIPC:
The Securities Investor Protection Corporation (SIPC) is a non-profit organization established by the Congress of the United States to insure client accounts against the failure of member brokerage firms. You can obtain more information by visiting http://www.sipc.org.

Frequently Asked Questions:

Q: How is my customer's account protected with "excess SIPC" coverage?
A: Customer accounts are protected in the event that SIPC limits are exhausted. The additional insurance becomes effective after the implementation of SIPC coverage. The coverage is in place to protect the customer in the event of a theft, misplacement, destruction, burglary, embezzlement or abstraction of customer securities. It does not protect the customer from declining changes in market value.

Q: What triggers SIPC and "excess SIPC" coverage?
A: Three things must happen for SIPC and "excess SIPC" coverage to be triggered:
• There is a financial failure and a liquidation of the carrying Broker Dealer.
• Securities/Cash are missing from an account.
• SIPC pays each client in accordance with their pro-rated share of the loss, up to $500,000 per account (of which $250,000 may be cash).