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.