Brokerage firm failures are rare.
If it happens, SIPC protects the securities and cash in your brokerage account up to $500,000. The $500,000 protection includes up to $250,000 protection for cash in your account to buy securities.
SIPC protection is only available if your brokerage firm fails and SIPC steps in.
You must file a claim to receive protection from SIPC.
SIPC's ability to satisfy your claim is limited by law.
SIPC protects your investments if:
SIPC does NOT protect: