Securities Investor Protection Corporation (SIPC)

The Securities Investor Protection Corporation (SIPC) is a nonprofit organization in the United States that provides limited protection to investors in the event a brokerage firm fails. If a brokerage goes bankrupt and customers lose their cash or securities, the SIPC steps in to help recover assets, up to $500,000 per customer, including a $250,000 limit for cash. It’s important to note that SIPC does not cover losses from investment declines, but it safeguards your investments against fraud or firm failure, helping maintain investor confidence in the financial system.