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Regulation & Compliance

SIPC

Also called: Securities Investor Protection Corporation, SIPC insurance

SIPC protects US brokerage customers if their broker fails, covering up to $500,000 in securities including $250,000 of cash. The critical distinction from deposit insurance is what it covers: SIPC restores missing assets, it does not compensate for investments that fell in value. It also doesn't cover most commodities, futures or unregistered investments.

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