What is SIPC protection?

SIPC: the basics

SIPC stands for Securities Investor Protection Corporation. It is a non-profit corporation created by US law (the Securities Investor Protection Act of 1970) that protects customers if a member broker-dealer fails and customer assets are missing.

Amarah's US partner broker is a SIPC member. Your securities are held by that partner broker, and SIPC protection applies within the limits and conditions set by SIPC rules.

What SIPC covers

If a SIPC-member broker fails and customer assets are missing, SIPC works to return customers' securities or their cash value, up to the limits set by SIPC. The current limits are published on sipc.org.

Coverage limit: set by SIPC per customer (see sipc.org)
Cash: a lower limit applies to 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 partner broker is a member of 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.