Frequently Asked Questions - SIPC
What is SIPC?
The Securities Investor Protection Corporation (SIPC) is a non-profit organization established by federal law in 1970. Its primary role is to protect customers of brokerage firms that are members of SIPC in case of the firm’s insolvency. SIPC ensures that securities and cash in customer accounts are protected up to specified limits. For more information you may refer to “How SIPC Protects You” provided by SIPC, visit www.sipc.org, or contact SIPC at (202) 371-8300.
Who holds my securities? Are they members of SIPC?
Securities and cash owned by Composer Securities (“Composer”) users are held by Alpaca Securities LLC (“Alpaca”) and Apex Clearing Corporation (“Apex”). Alpaca, Apex, and Composer are all members of SIPC.
Please note that depending on the user and brokerage account type, securities and cash in the account may be held by Alpaca or Apex:
- Securities and cash in Individual accounts may be held at Alpaca or Apex. If you are unsure where your individual account is held, you can check your account statements or contact us at help@composer.trade.
- Securities and cash in Retirement accounts are held by Apex.
- Securities and cash in Business accounts are held by Alpaca.
What happens if Alpaca or Apex or Composer were to become insolvent?
Alpaca, Apex, and Composer are members of the Securities Investor Protection Corporation (SIPC). SIPC protects assets - both cash and securities - held in your brokerage account(s). SIPC coverage comes into play if Alpaca,Apex, or Composer becomes insolvent and you are unable to get access to the assets in your brokerage account(s). SIPC coverage protects assets up to a maximum of $500,000, including a maximum of $250,000 for cash. For full details regarding SIPC coverage, please refer to www.sipc.org.
Additional Coverage for accounts held by Alpaca:
Alpaca has an additional insurance policy through Lloyd's of London to supplement SIPC protection known as Excess SIPC Coverage. The additional insurance becomes available to customers in the event that SIPC limits are exhausted. This additional insurance provides protection for any Alpaca customer up to $30 million in securities and $1 million in cash, and is covered at an aggregate limit of $175 million across all Alpaca customer accounts.
Additional Coverage for accounts held by Apex:
Apex also has an additional insurance policy through Llyod’s of London to supplement SIPC protection known as Excess SIPC Coverage. The additional insurance becomes available to customers in the event that SIPC limits are exhausted. This additional insurance provides protection for any Apex customer up to $37.5 million in securities and $900,000 in cash, and is covered at an aggregate limit of $150 million across all Apex customer accounts.
Looking for additional coverage? To discuss additional coverage options, please contact us at help@composer.trade.
Please note, there are limitations to coverage:
- Neither SIPC coverage nor additional coverage provides protection against loss in the market value of securities.
- SIPC coverage (and additional coverage) does not apply to crypto assets. If you have a crypto account, that account exists with Alpaca Crypto, LLC, a separate entity and separate account from Alpaca Securities LLC. Your crypto assets held by Alpaca Crypto are not covered by SIPC.
If you have any questions, please contact us at help@composer.trade.