SIPC (Securities Investor Protection Corporation)  - a corporation to protect the rights of investors in securities, which is a non-profit organization. SIPC, created under the Law on the protection of investors, brokers-funded members.

This corporation is not included in the number of government agencies and regulatory bodies, and its main task - to protect customers of broker-dealers that are registered with the SEC. Protecting investors from potential losses due to bankruptcy broker-dealers, SIPC works to maintain confidence in the U.S. stock market. In this case we are not talking about situations where the damages caused by loss of the market value of the securities that are in the client account.

The powers possessed by SIPC

  1. In the case of bankruptcy of a brokerage company SIPC has the right to ask a federal court to appoint a trusted person who will carry out the elimination of poverty and the protection of its customers. In some cases, when the situation for small brokers, corporations can directly defend the rights of clients.
  2. SIPC may seek to transfer a part or the total number of customer accounts to another brokerage firm that is a member of the corporation. In this case, customers are informed about it immediately, with the right to continue working with the new broker or select a company of your choice. If the customer agrees to continue working with the company, a member of SIPC, he loses the least amount of time possible for a short break in their trading activity.
  3. SIPC defends the interests of investors and in the event that the broker has not conducted proper reporting, which makes it harder or impossible to transfer accounts. Then customers receive all of the securities registered in your name, and money, and the remaining shares are allocated on a proportional basis. Then SIPC funds are open to meet the claims, the amount of which is limited to 500 thousand dollars. This includes the amount of 100 thousand dollars that can be allocated to satisfy the claims for cash.

SIPC licensed forex brokers are:

Boston Merchant Financial
QB Finance
FIRST CLEARING LLC
CV BROKERAGE INC
BNP PARIBAS PRIME BROKERAGE INC
AMERICAN CENTURY BROKERAGE INC

This license in forex broker rating is 70 points.