Q: Follow up question
Please advise if one has over $1M including Registered and CASH account at one brokerage. Do you suggest to move some to another brokerage or will that will be cover by CIPF.
Q: I think I understand how CIPF insurance works. But wanted to clarify… if one has over a million dollars in stocks, bonds, ETF’s, mutuals, and cash in a non-registered account at a brokerage, is it best to move some to another brokerage? As CIPF covers only one million per non-registered account per brokerage?
Asked by Kim on October 03, 2024
5I RESEARCH ANSWER:
If an investor has more than $1M in assets and wants to maximize possible protection, then yes.
Please advise if one has over $1M including Registered and CASH account at one brokerage. Do you suggest to move some to another brokerage or will that will be cover by CIPF.
Q: I think I understand how CIPF insurance works. But wanted to clarify… if one has over a million dollars in stocks, bonds, ETF’s, mutuals, and cash in a non-registered account at a brokerage, is it best to move some to another brokerage? As CIPF covers only one million per non-registered account per brokerage?
Asked by Kim on October 03, 2024
5I RESEARCH ANSWER:
If an investor has more than $1M in assets and wants to maximize possible protection, then yes.
5i Research Answer:
Unless one is particularly concerned about a small brokerage, we do not see a big need to spread money around. But note, there is a $1M limit on each account, so technically there is exposure. But the Canadian record on insolvent brokers is excellent, and we do not know of a single case where a client lost $$ other than market losses. The reason is that client accounts are the MAIN asset of any brokerage. When a broker gets in trouble other, stronger brokers covet these accounts and they can be quickly transferred.