Like with most other online brokers, all customer brokerage accounts are insured by the government (SIPC, <a href="http://www.sipc.org/)">http://www.sipc.org/)</a> in case of brokerage firm failure, very similarly to the way bank accounts are insured by the FDIC. The insurance is limited to $500,000 per customer, including up to $250,000 for cash.