Where are your funds held?
When you onboard to Wealth, we create a brokerage account in Alpaca, a US-registered broker-dealer, regulated by FINRA. Your funds are custodied in the United States under strict regulatory oversight.
Are your funds insured?
Yes. When you open a Wealth account, your investments are protected by the Securities Investor Protection Corporation (SIPC), insured up to $500,000. This covers reimbursement in the event of broker-dealer insolvency. This insurance is automatically included, you don’t need to take any action to activate it.
SIPC safeguards the actual securities held in your account, such as stocks and ETFs, in the rare event that your brokerage firm fails, but it does not protect against market losses or investment performance fluctuations.
What SIPC insurance covers?
Up to $500,000 per account
Protection applies in the event of broker-dealer insolvency
Protection doesn't apply in the event of losses due to market fluctuations
What is the additional protection with DolarApp?
Our brokerage partner, Alpaca Securities, offers additional insurance via providers at Lloyd’s of London, which provides:
Coverage up to $30 million per account
Aggregate limit of $150 million across all accounts
Again, protection applies in the event of broker-dealer insolvency
To better understand SIPC’s coverage and limits, explore:
Is ARQ regulated?
Yes. ARQ is registered with the SEC as an investment advisor. This means we comply with all compliance obligations related to information security, anti-money laundering (AML), data protection, among others, as required by US regulatory bodies.