Your money is protected by the Securities Investor Protection Corporation ("SIPC"). SIPC protects client accounts against the loss of their securities in the event of the member’s insolvency and liquidation by replacing missing securities and cash up to a maximum of $500,000 per client.
The purpose of the SIPC is to expedite the recovery and return of missing customer cash and assets during the liquidation of a failed investment firm.
If the brokerage firm goes out of business, is closed and customer assets are missing, SIPC steps in and works to return customers’ cash, stock, and other securities held by the firm.
When a brokerage firm, SIPC protects the securities and cash in a customer’s brokerage account up to $500,000. The $500,000 protection includes up to $250,000 for claims for cash.