The money that will be invested in your Investment Account is protected by the Securities Investor Protection Corporation ("SIPC"). The SIPC protects customers' accounts against the loss of their securities in the event of the insolvency and liquidation of the custodian or broker up to a maximum of $500,000 per customer, including $250,000 for cash claims.
Put another way: the purpose of the SIPC is to accelerate the recovery and return of customers' lost cash and assets during the liquidation of an insolvent investment company.
If the broker goes out of business and your assets disappear, SIPC steps in and works to return to you the cash, stock, and other securities held by the company.
If you would like to learn more about SIPC coverage, you can consult the explanatory brochure available at www.sipc.org, or contact them at 202-371-8300.