SIPC Coverage
The Securities Investor Protection Corporation — a nonprofit funded by member firms, not a government agency — restores customer assets when a broker-dealer fails: up to $500,000 per separate customer capacity, of which at most $250,000 may be cash.
Compare with FDIC, which insures bank deposits up to $250,000 per depositor per bank per ownership category — and does not cover securities at all, even those bought at a bank. Commodity futures and currency positions fall outside SIPC protection.