Asset security and insurance
Your assets are held at Apex Clearing in your name and protected by SIPC up to $500,000, plus additional coverage through Apex's Lloyd's of London policy. Learn how asset security and insurance work at Frec.
Where are my assets held?
Your assets are held in your name (listed as Apex FBO [Your Name], where FBO means "For Benefit Of") at our clearing firm and custodian, Apex Clearing Corporation. Apex is one of the largest U.S. custodians with over $200 billion in assets for well-known financial technology companies such as SoFi, Ally Invest, Betterment, and Webull.
If Frec were to close, you would still have access to your assets at Apex and would be able to transfer them in-kind to another firm. You can view your holdings directly through Apex by opening a concurrent account with them. Instructions for setting this up are available in this help center article.
How is my money insured?
SIPC Coverage
Customer assets are protected by the Securities Investor Protection Corporation (SIPC) for up to $500,000 per customer, including up to $250,000 for cash. This coverage is standard across U.S. brokerage firms and is designed to protect customer assets in the event of broker-dealer failure.
Historically, if a brokerage closes, customer assets have typically been protected and transferred in an orderly fashion to another registered firm. You can read more about what happens if a brokerage firm closes its doors in this FINRA article.
Additional coverage through Apex and Lloyd's of London
Beyond SIPC, Apex has purchased an additional insurance policy through a group of London Underwriters (with Lloyd's of London Syndicates as the Lead Underwriter) to supplement SIPC protection. This policy totals $150 million in aggregate coverage across all Apex customers combined.
This additional coverage is subject to a combined per-customer sub-limit, including amounts returned by a Trustee, SIPC, and the London Underwriters, of $37.5 million for securities and $900,000 for cash. See additional information in Apex's disclosure of SIPC Information.
What this coverage does not cover
SIPC and Apex do not protect against any decline or loss in market value of the securities in your account.