Insurance

Ok, there are two types SIPC (protect brokerage accounts) and FDIC (deposit accounts)... SIPC up to 500k if the brokers goes bankrupt (100 of that amount covers cash as well). This is meant to protect segregated funds at a broker. The regulations mandate the equity in investments your own is yours and banks must not "commingle" thier own funds with customer funds for any reason. So if the bank is on the level you equity should always be readly available and never used to finance any of the banks activities. How commingling of funds is not unprecidented, Refco definitely did back 2 years ago. FDIC- Banking cover up into a 100k... If you have more the a 100k in cash in a deposit account open another account at another bank.