SIPC
MarketsDefinition
Securities Investor Protection Corporation. Federal corporation that insures brokerage accounts up to $500K (including $250K cash) against broker insolvency.
SIPC is NOT FDIC. It protects against broker theft / failure, not market losses. Most brokers carry additional excess SIPC insurance (Lloyd's of London or similar) for $100M+ aggregate coverage.
SIPC is NOT FDIC. It protects against broker theft / failure, not market losses. Most brokers carry additional excess SIPC insurance (Lloyd's of London or similar) for $100M+ aggregate coverage.