Because the deposits are obligations of the issuing bank, and not the brokerage firm, FDIC insurance applies.Ī brokered CD is similar to a bank CD in many ways.
The CDs are usually issued in large denominations and the brokerage firm divides them into smaller denominations for resale to its customers. Fidelity offers investors brokered CDs, which are CDs issued by banks for the customers of brokerage firms.
