How much insurance does the Securities Investor Protection Corporation provide per account?

The Securities Investor Protection Corporation (SIPC) provides insurance coverage of up to $500,000 per customer, which includes a maximum of $250,000 for cash claims. This insurance is designed to protect investors in the event that a brokerage firm fails or becomes insolvent, ensuring that customers can recover at least a portion of their lost assets.

This level of coverage is significant because it reflects an effort to encourage investor confidence in the securities markets. By protecting a sizable amount of assets, the SIPC helps to mitigate fears of potential losses associated with brokerage firm failures. Understanding this coverage limit is essential for investors as they consider the safety of their investments and the importance of choosing reputable brokerage firms.