Q: What is a SIPA account? Are the funds secure?
A: I’m not sure what you are referring to about a SIPA account – but the closest thing I can think you would be referencing in SIPC insurance.
SIPC insurance is the brokerage account world’s version of FDIC insurance for bank accounts. In the event of a brokerage firm’s failure, the value of securities in your accounts is protected up to $500,000 and cash in the account up to $250,000 (but the cash insurance will drop to $100,000 after Dec 31, 2012 if the rule is not extended). I hope this helps – let me know if you were referencing something totally different.