What is SIPC insurance?

SIPC insurance protects your investments in case of brokerage failure

SIPC insurance for brokerages is like FDIC insurance for banks. Instead of protecting against bank failure, it protects against brokerage failure. In the unlikely event that our custodian, Altruist, was to go bankrupt, you could claim up to $40.5 million of restitution for your stocks and bonds through a combination of SIPC and private insurance.

Note that SIPC insurance does NOT protect against loss in value of your shares from movements in the market. Always remember that investing has no guarantee of future returns. The $40 million has a cap of $150 million per Altruist incident.