Is Sharebuilder a Scam? Is Capital One Sharebuilder Safe and Legitimate Brokerage Firm? Are Your Money, Assets and Investments Insured?
Is Sharebuilder Safe?
We are sometimes being asked the following questions: Is Capital One Sharebuilder a scam? Is Sharebuilder safe to use, to keep my money, assets and investments? Is Capital One Sharebuilder account SIPC/FDIC insured?
The short answer - yes, it's legitimate online broker. The company was owned by international banking giant ING, and 2012 was purchased by one of the
largest banks in United States - Capital One.
We have had account with Sharebuilder since 2010. You can read a detailed review of it containing company's pros, cons, fees and client comments about having account there in
2015 Sharebuilder Review.
Is Sharebuilder Insured And Regulated?
Capital One Sharebuilder is a member of SIPC (The Securities Investor Protection Corporation - http://www.sipc.org/).
SIPC® account protection is:
- Protection for securities and cash by the Securities Investor Protection Corporation (SIPC): Accounts of Sharebuilder 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.
Customers who use Capital One banking services should not be worried either - their bank accounts are protected by the FDIC insurance.
The FDIC — or Federal Deposit Insurance Corporation — is a U.S. federal agency that protects you against the loss of your deposit accounts (such as checking and savings) if your FDIC-Insured bank fails.
The basic FDIC insurance amount is $250,000 per account holder per insured bank for deposit accounts and $250,000 for certain retirement accounts deposited at an insured bank. These insurance limits include principal and accrued interest.
The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, municipal securities, and money market funds, even if these investments were bought from an insured bank.
Capital One Sharebuilder BBB (Better Business Bureau) Rating: Not Rated
Capital One Sharebuilder Incentive and Review
Get $50 when you open new non-IRA account at ShareBuilder.
Read full Sharebuilder Review.
This article was updated on 2/26/2015.