When you open a Wealth account, your investments are protected by the Securities Investor Protection Corporation (SIPC). It is importante to note that SIPC protection does not cover losses due to market fluctuations. If your investments lose value due to market conditions, SIPC will not protect you.
What SIPC insurance covers
Total limit: Up to $500,000 per account
Sub-limit for cash: $250,000
What it protects: Reimbursement of securities or cash in the event of broker-dealer insolvency
What it doesn’t cover:
Losses due to market fluctuations
Assets such as futures and options on futures
Extended protection with DolarApp
Our brokerage partner, Alpaca Inc., offers extended coverage provided by insurers at Lloyd's of London for extra peace of mind. This includes:
Total limit: Up to $30 million per account
Sub-limit for cash: $900,000
Aggregate limit: $150 million across all accounts
When it applies: If the financial intermediary is unable to return your securities or cash due to insolvency
Additional reading
To better understand the limits and scope of SIPC insurance, we recommend exploring the following resources:
If you have any questions or need help, feel free to contact us via the in-app support chat or by emailing help@dolarapp.com.