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Clear answers about brokered CDs, our platform, accounts, and how CleverAlpha Securities works. Tap any question to expand.

About CleverAlpha Securities
What is CleverAlpha Securities? FINRA SIPC

CleverAlpha Securities is a registered broker-dealer (a DBA of Velocity Capital LLC, CRD #171810) and member of FINRA and SIPC. We specialize in brokered certificates of deposit (CDs) and fixed-income products, giving investment advisers, accredited investors, and self-directed investors institutional-quality access to the CD marketplace.

You can verify our registration at any time via BrokerCheck.

How is CleverAlpha Securities related to CleverAlpha Asset Management?

They are affiliated entities under the CleverAlpha family of companies:

  • CleverAlpha Securities (DBA of Velocity Capital LLC, CRD #171810) — FINRA/SIPC-registered broker-dealer. Handles brokered CD and fixed-income transactions.
  • CleverAlpha Asset Management LLC (CRD #301620) — SEC-registered investment adviser. Provides automated and discretionary portfolio management services.
  • CleverAlpha Technologies LLC — Fintech tools for RIAs, broker-dealers, banks, and credit unions.

Each entity is separately registered and operates under its own regulatory framework.

Where can I verify your registration? FINRA

Use BrokerCheck by FINRA to verify CleverAlpha Securities — search for firm CRD #171810. BrokerCheck shows registration history, disclosures, and background on all FINRA member firms and registered representatives.

For CleverAlpha Asset Management, visit the SEC IAPD and search CRD #301620.

Products & Instruments
What is a brokered CD? FDIC

A brokered CD is a certificate of deposit issued by a bank or credit union and sold through a licensed broker-dealer rather than directly by the issuing institution. Brokered CDs often carry higher rates than bank-direct CDs because they are sold competitively in bulk and tradeable on the secondary market.

Like bank CDs, brokered CDs are FDIC-insured up to $250,000 per depositor per issuing institution. The key difference: if you need to sell before maturity, the price may be above or below face value depending on prevailing interest rates.

Are brokered CDs FDIC insured? FDIC

Yes — FDIC-labeled brokered CDs are backed by the issuing bank up to $250,000 per depositor, per institution, per ownership category. FDIC insurance protects your principal if the issuing bank fails.

It does not protect against market risk — if you sell the CD before maturity and rates have risen, the secondary-market price may be below face value. Corporate notes and structured notes are not FDIC insured.

How do brokered CDs differ from bank CDs?
Feature Brokered CD Bank CD
Where soldBroker-dealerIssuing bank
RatesTypically higher (competitive)Set by bank
LiquidityTradeable on secondary marketEarly-withdrawal penalty
Early exit riskMarket price (gain or loss)Fixed penalty
FDIC insuredYes (issuing bank)Yes
What is a callable CD? Product

A callable CD gives the issuing bank the right to redeem the CD before its maturity date — typically after a call protection period (e.g., 6 months). Callable CDs pay higher rates to compensate investors for this risk.

Reinvestment risk: if the CD is called, your principal is returned in full, but you may have to reinvest at lower rates if interest rates have fallen — the reason banks call CDs in the first place. CDexplorer clearly labels each offering as CALLABLE or NON-CALL.

Are corporate notes the same as brokered CDs? Product

No. Corporate notes are debt obligations issued by corporations, not banks, and are not FDIC insured. They carry credit risk rated by agencies such as Moody's and S&P. Investment-grade notes (BBB or better) offer an alternative to CDs for investors seeking incremental yield with manageable credit risk.

CDexplorer offers both brokered CDs and investment-grade corporate notes. Each listing clearly shows the instrument type and FDIC status.

What is the minimum investment?

Minimum denominations vary by issuer. Most brokered CDs are available in $1,000 increments with a $1,000 minimum. Some institutional offerings require a minimum of $10,000 or $25,000. CDexplorer displays the minimum denomination for each offering at the time of listing.

CDexplorer Platform
What is CDexplorer? Platform

CDexplorer is CleverAlpha Securities' proprietary brokered CD marketplace. It displays live rates across issuers and maturities, overlays the U.S. Treasury par yield curve as a risk-free benchmark, and allows registered users to submit Indications of Interest (IOIs) directly to our desk.

Access CDexplorer at app.cleveralphasecurities.com.

What is an IOI (Indication of Interest)?

An IOI is a non-binding expression of intent to purchase a CD or note at a specified CUSIP, quantity, and price. When you submit an IOI through CDexplorer, our desk reviews it, contacts the counterparty dealer, and confirms availability.

You receive email confirmation before any trade is executed. IOIs are not firm orders until confirmed by both parties. This ensures no surprises and full transparency at every step.

What is the UST par yield curve and why does it appear on CDexplorer?

The U.S. Treasury par yield curve shows the risk-free rate the U.S. government pays to borrow at each maturity. Because Treasuries carry zero credit risk, they are the universal fixed-income benchmark.

CDexplorer overlays live Treasury rates (sourced daily from Treasury.gov) on the BEST APY BY TERM chart. The gap between the gold CD line and the white UST line is the spread — the extra yield you earn for accepting issuer credit risk and reduced liquidity.

How are trades settled?

Brokered CD trades generally settle on a T+1 or T+2 basis depending on the issuer and transaction type. Settlement instructions are confirmed at the time of trade execution. CleverAlpha Securities may utilize an introducing/clearing arrangement with an affiliated custodian for certain account types.

Accounts & Getting Started
What types of accounts does CleverAlpha Securities support?

We currently support:

  • Individual taxable brokerage accounts
  • Investment adviser accounts — for RIAs placing trades on behalf of clients

IRA and trust account support is on our roadmap. Email support@cleveralphasecurities.com for current eligibility and custodian details.

How do I get started?

Click Get Started on any page or email support@cleveralphasecurities.com. Our onboarding team will walk you through account eligibility, required documentation, and platform access.

Investment advisers should mention their RIA CRD number to expedite the process.

Regulatory & Compliance
Is CleverAlpha Securities FINRA and SIPC registered? FINRA SIPC

Yes. CleverAlpha Securities (DBA of Velocity Capital LLC) is a registered member of FINRA (Financial Industry Regulatory Authority) and a member of SIPC (Securities Investor Protection Corporation).

SIPC protects customers of FINRA member broker-dealers up to $500,000 (including $250,000 for cash) if the firm fails. SIPC protection is not the same as FDIC insurance and does not protect against market losses.

Firm CRD: 171810. Verify at BrokerCheck.

What disclosures should I read before investing?

We recommend reviewing:

Brokered CDs are not savings accounts. They are subject to market risk if sold prior to maturity. FDIC insurance applies to the issuing bank, not to CleverAlpha Securities.

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