What does SIPC insurance cover?

SIPC coverage provides …

  • Up to $500,000 in total coverage per customer for lost or missing assets of cash and/or securities from a customer’s accounts held at the institution.
  • Up to $250,000 of that total can be applied to protect cash within a customer’s account that is not yet invested in securities.
  • Protection in case of unauthorized trading or theft from an account.

SIPC insurance doesn’t cover …

  • Investment losses or worthless stocks or other securities.
  • Losses due to account hacking, unless the firm was forced into liquidation due to the hack.
  • Claims against bad or inappropriate investment advice. Complaints about firms are handled by the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC) and state securities regulators.

Source: https://www.nerdwallet.com/article/investing/sipc-insurance-what-it-does-and-does-not-protect

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