Wealthfront maximizes the protection of your assets by doing the following:
- SIPC Insurance: Wealthfront Brokerage Corporation is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). An explanatory brochure is available upon request or at www.sipc.org.
An IRA is considered a different type of account than a taxable account for this purpose, but different types of IRA accounts are considered one account for this purpose.
- All fully-paid (i.e. not on margin) securities are held in street name: Wealthfront only invests in SIPC covered securities registered in street name at the Depository Trust Company (DTC). That means the securities purchased on your behalf by Wealthfront are held separately from other Wealthfront assets.
- No proprietary trading: What this means is that neither Wealthfront nor Wealthfront Brokerage Corporation trade in securities for their own accounts. We only make trades for on behalf of our clients' accounts.
Nothing in this blog should be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security. Financial advisory services are only provided to investors who become Wealthfront Inc. clients pursuant to a written agreement, which investors are urged to read carefully, that is available at www.wealthfront.com. All securities involve risk and may result in some loss. For more information please visit www.wealthfront.com or see our Full Disclosure. While the data Wealthfront uses from third parties is believed to be reliable, Wealthfront does not guarantee the accuracy of the information.