I’m thinking about opening a brokerage account. If the brokerage goes bankrupt or closes, will my account be protected?
Most brokerages carry Securities Investor Protection Corp. (SIPC) insurance, protecting your account for up to $500,000, including up to $100,000 in cash claims. (Many brokerages carry additional insurance, too.) This doesn’t protect you against a loss in value of your holdings, though. Instead, it protects against the financial failure of broker-dealers.
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