What is SIPC protection?

SIPC: the basics

SIPC stands for Securities Investor Protection Corporation. It is a US government-backed organisation that protects investors if a broker-dealer fails — for example, if it goes bankrupt or is found to have committed fraud.

Amarah partners with a US broker-dealer that is a SIPC member. This means your securities and cash held in your brokerage account are automatically covered by SIPC protection.

What SIPC covers

SIPC protects up to 500,000 USD per customer account, including up to 250,000 USD in cash. This means if the broker holding your Apple and Tesla shares were to fail and your assets went missing, SIPC would work to return your securities or their cash equivalent — up to those limits.

• Coverage limit: up to 500,000 USD per customer
• Cash sub-limit: up to 250,000 USD for uninvested cash
• What is covered: stocks, ETFs, bonds, and other registered securities

What SIPC does NOT cover

SIPC is not like a bank deposit guarantee. It protects against broker failure and missing assets — not against your investments declining in market value. If Apple's stock falls 30%, SIPC does not compensate you for that loss.

• Market losses: not covered — SIPC only covers missing assets due to broker failure
• Crypto assets: generally not covered by SIPC (not applicable to Amarah)
• Fraud by the investor: accounts used for illegal activity are not protected

FINRA: the broker's regulator

Beyond SIPC, Amarah's broker partner is regulated by FINRA — the Financial Industry Regulatory Authority. FINRA sets conduct standards, monitors broker compliance, and can discipline or shut down firms that violate rules.

FINRA also maintains BrokerCheck, a free public database where you can verify any US broker's registration, qualifications, and disciplinary history.

What this means for you

As an Amarah user, your investments are held in your name in a segregated account at our US broker partner — not pooled with Amarah's own assets. If Amarah the company were ever to face difficulties, your securities would remain yours, protected by SIPC.

This is the gold standard for investor protection in global markets, and it is the same framework used by Robinhood, Fidelity, Charles Schwab, and every other major US brokerage.