SIPC protection
Protection for brokerage customers if the brokerage firm fails and their investments or cash are missing, up to $500,000, including $250,000 in cash.
SIPC, the Securities Investor Protection Corporation, steps in when a member brokerage firm fails and customer assets are missing. It covers stocks, bonds, funds and cash held for investing.
It does not protect against losses when prices fall, bad investment advice, or crypto that is not a registered security. It is different from FDIC insurance, which covers bank deposits.