Is my money in E-Trade (or any stock brokerage) protected?
Etrade is member of SIPC: Securities Investor Protection Corporation (SIPC) A non-profit membership corporation established by Congress which insures securities and cash in customer accounts up to $500,000 (up to $100,000 on cash) in the event of brokerage bankruptcy. SIPC Protection for E*TRADE Securities Brokerage Accounts E*TRADE Securities LLC, Member of SIPC, which protects securities of its members up to $500,000 (including $100,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org. E*TRADE Clearing LLC has purchased from London insurers additional protection with an aggregate limit of $600 million to pay amounts in addition to those returned in a SIPC liquidation, and providing that (1) the combined return from the Trustee distributions, SIPC and London to any customer does not exceed $150 million, and (2) as a sub limit, return of cash to any customer by London does not exceed $900,000. This coverage does not protect against loss of the market
