Is Walnut safe? What happens if Walnut shuts down?
The most common question we get from new users is some variant of “is this safe?” The honest answer is that Walnut is structurally safer than most fintech apps because we never hold your money. Your investments stay at your broker. We are the AI layer on top. This guide breaks down exactly what that means and what would happen if Walnut ever shut down.
Where does my money actually live?
It lives at your broker, exactly the same place it lived before you signed up for Walnut. If you connect a Fidelity account, your shares and cash stay at Fidelity. If you connect a Public account, the same. Walnut doesn't open a Walnut-branded account anywhere; we connect to the broker account you already have.
This is the single most important fact about how Walnut works. Many other AI investing apps act as the broker themselves and custody your money. Walnut is intentionally not that. We are an informational and assistance layer on top of a broker you choose and trust.
How does Walnut handle my broker credentials?
We don't. Broker connections go through SnapTrade, a regulated broker-integration provider. When you click “Connect a broker” on the Brokerage page, you're sent to a secure SnapTrade-hosted flow where you authenticate directly with your broker (Fidelity, Public, Schwab, and so on). Walnut never sees your username or password.
What Walnut receives back is a read token (and where the broker supports it, a trade token) scoped to your account. We use it to fetch positions, prices, and basic account info. The token can be revoked any time from Walnut's Brokerage page or directly from your broker.
Can Walnut place trades without me knowing?
No. Trade execution in Walnut works through the Invest dialog, which shows you the full order plan before anything is sent to your broker: every ticker, every share count, every estimated price, every total cost. Nothing happens until you click Approve.
There is no automatic rebalancing, no automatic exit, no AI-driven background trading. The AI proposes; you decide. That's a deliberate product choice, and a regulatory one.
What if Walnut shuts down?
Your money is completely unaffected. Because Walnut never custodied your assets, there is nothing on Walnut's side to wind down from a money standpoint. Your shares are at your broker. Your cash is at your broker. Your account at the broker continues to work exactly as it did before you ever heard of Walnut.
What you would lose access to is the AI conversation, the thematic baskets, and the cross-account analysis Walnut layers on top. Useful, but not money-at-risk. This is structurally different from custodian fintech apps where shutdown forces you to scramble to move assets out.
What protections does Walnut not provide?
Honest disclosures:
- SIPC insurance sits with your broker, not with Walnut. Walnut isn't a broker, so this is the right way for it to work, but it's worth knowing what covers what.
- Investment advice protection doesn't apply here either. Walnut is an informational tool. It is not a registered investment adviser and does not have fiduciary duty to your portfolio. You stay responsible for your decisions.
- Market risk is real and unavoidable. Your positions can lose value. Walnut doesn't change that and would never claim to. Past performance doesn't guarantee future results.
Try it in Walnut
Connect your existing broker through Walnut and let AI do the research, basket-building, and tracking, without ever taking custody of your assets.
FAQ
Does Walnut hold my money?
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No. Walnut never custodies your assets. Your money lives at your broker (Fidelity, Public, Robinhood, Schwab, or whichever you connect), exactly the same way as before you signed up for Walnut. We are the AI layer on top, not a custodian.
Can Walnut see or store my broker password?
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No. Broker connections go through SnapTrade, a regulated broker-integration provider used by many fintech apps. Your brokerage credentials never reach Walnut's servers. We get read access to your positions and prices through a secure token, and trading access (where supported) goes through the same regulated channel.
Can Walnut place trades on my behalf?
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Only with your explicit approval, on a per-order basis. Every order is shown to you in the Invest dialog with the ticker, side, share count, and estimated value. You review and confirm before anything is sent to your broker. Walnut never auto-trades.
What happens to my money if Walnut shuts down?
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Your positions stay at your broker, completely untouched. Because Walnut never custodies anything, there is no Walnut account to close from a money standpoint. Worst case, you stop using Walnut and your brokerage account continues to work exactly as it always has.
Is SnapTrade safe?
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SnapTrade is a regulated broker-integration provider that brokers your access between Walnut and your brokerage account. They handle the OAuth flow with your broker, so credentials are exchanged between you and your broker directly, not through Walnut. Many other fintech apps use the same provider.