Yes, this is through the Securities Investor Protection Corporation (SIPC) in the USA. SIPC protects against the loss of cash and securities – such as stocks and bonds – held by a customer at a financially-troubled SIPC-member brokerage firm. The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash. It applies to each account you hold, not your overall holdings (i.e your SMSF and your individual account).
A non-U.S. citizen with an account at a brokerage firm that is a member of SIPC is treated the same as a resident or citizen of the United States with an account at a brokerage firm that is a member of SIPC. As our Broker Dealer (DriveWealth) is a member of the SIPC, as a Stake customer, your Stake account is covered under SIPC.
SIPC does not protect against the decline in value of your securities. SIPC does not protect individuals who are sold worthless stocks and other securities. SIPC does not protect claims against a broker for bad investment advice, or for recommending inappropriate investments.
As Gift Cards / Stake Credit are not cash or securities, they are not bank or SIPC guaranteed. Only securities held in an account are SIPC protected.
More details on the insurance you get are here: www.sipc.org.