Betterment Account Protection StatementSource:
http://support.betterment.com/customer/portal/articles/934707-is-my-money-insured-Betterment Securities provides brokerage services to all Betterment customers. Betterment Securities is a member of the Securities Investor Protection Corp (SIPC), which means that the securities in your account are protected up to $500,000. For details, please see
www.sipc.org. Unlike FDIC insurance for banks, SIPC does not protect against loss of principal due to movements in the market value of your securities.
Vanguard Account Protection StatementSource:
https://personal.vanguard.com/us/whatweoffer/stocksbondscds/accountprotectionSecurities in your brokerage account are held in custody by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation. Vanguard Marketing Corporation is a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at sipc.org.
To offer greater protection and security, Vanguard Marketing Corporation has secured additional coverage from certain insurers at Lloyd's of London and London Company Insurers for eligible customers with an aggregate limit of $250 million, incorporating a customer limit of $49.5 million for securities and $1.75 million for cash. Coverage provided by SIPC and certain Lloyd's of London and London Company Insurers does not protect against loss of market value of securities. The policy provided by certain Lloyd's of London and London Company Insurers is subject to its own terms and conditions.
Fidelity Account Protection Statement -- Excess of SIPCSource:
https://www.fidelity.com/why-fidelity/safeguarding-your-accountsExcess of SIPC
In addition to SIPC protection, Fidelity provides its brokerage customers with additional "excess of SIPC" coverage. The excess coverage would only be used when SIPC coverage is exhausted. Like SIPC, excess protection does not cover investment losses in customer accounts due to market fluctuation. It also does not cover other claims for losses incurred while broker-dealers remain in business. For example, fraud claims would not be covered if the brokerage firm was still in operation. Total aggregate excess of SIPC coverage available through Fidelity's excess of SIPC policy is $1 billion. Within Fidelity's excess of SIPC coverage, there is no per account dollar limit on coverage of securities, but there is a per account limit of $1.9 million on coverage of cash awaiting investment. This is the maximum excess of SIPC protection currently available in the brokerage industry.
Both SIPC and excess of SIPC coverage is limited to securities held in brokerage positions, including mutual funds if held in your brokerage account and securities held in book entry form.
At surface level, it appears both Vanguard and Fidelity offer protection in excess of SIPC limits.