Custodial Protection and Fund Safety: How Axos Clearing & SIPC Safeguard FoundersXTrade Investors

How Your Capital is Held and Protected

At FoundersXTrade, protecting user capital is our primary operational mandate. When you fund a brokerage account, your capital is not held as an unsecured loan to the platform. Instead, every share of stock, option contract, and cash balance is maintained under strict custodial segregation.

The Role of Axos Clearing LLC

Axos Clearing LLC acts as our clearing broker and custodian. As a registered broker-dealer subject to the regulatory oversight of the SEC and FINRA, Axos Clearing LLC maintains dedicated accounts for customer securities separate from all proprietary operations.

Understanding SIPC Insurance

Axos Clearing LLC is a member of the Securities Investor Protection Corporation (SIPC). In the event of a clearing firm insolvency, SIPC protects customer securities up to $500,000 (including up to $250,000 for cash claims). SIPC does not protect against normal market volatility or trading losses, but provides rock-solid defense against firm insolvency or asset misallocation.