How Your Investments Are Protected
When you open a Wealth account, your investments are protected by the Securities Investor Protection Corporation (SIPC).
What Does SIPC Protection Cover?
SIPC steps in if a broker-dealer fails.
It ensures you don’t lose your investments due to the firm’s financial issues.
Coverage limits:
Up to $500,000 per account, including a cash sublimit of $250,000.
If the broker-dealer fails, SIPC will reimburse you up to these limits.
Additional Protection from Alpaca Inc.
In addition to SIPC, our broker, Alpaca Inc., offers extra protection through Lloyd's of London. This provides:
Up to $30 million per account, with a cash sublimit of $900,000.
However, there’s a total limit of $150 million across all accounts.
What Is Not Covered?
SIPC protection does not cover losses due to market fluctuations.
If your investments lose value due to market conditions, SIPC will not protect you.
Futures and options on futures are not covered by SIPC or excess SIPC insurance.
To dive deeper into SIPC insurance, what it protects, and its limits, check out these helpful resources: