Your investments in U.S. stocks are safeguarded by the Securities Investor Protection Corporation (SIPC), a U.S. government-backed nonprofit organization. SIPC protection applies only in the event that a brokerage firm fails (for example, if Plum or our investment partner, Alpaca, were to go out of business).
This coverage includes:
Up to $500,000 per client
Of which up to $250,000 can be in cash
This protection extends to non-U.S. citizens and ensures that your assets can be safely recovered and transferred back to you if a firm failure occurs. Based on the SIPC rules, the investments are kept separate from company assets and cannot be used to pay off creditors.
SIPC protection does not cover losses due to market declines or changes in the value of your investments. It only applies in cases of brokerage failure, not market performance.