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At Stake, the security of your investment is paramount, and we employ multiple measures to ensure your assets are protected across all aspects of your investing journey.

Where is the AUD cash held?

When you add AUD cash to your Stake AUS account, it is initially held in a digital Airwallex account. These funds are first paid into an account held by Airwallex with an Australian bank (an authorised deposit-taking institution or 'ADI'). To further safeguard your funds, Stake facilitates the transfer of these funds at least once a day from the Airwallex account to a client monies account held on trust for you with a Big Four Australian bank.

Click here to learn more about the Airwallex Wallet Terms & Conditions.

 

Where is the USD cash held?

Your USD cash is maintained within your US account by DriveWealth. As mentioned, DriveWealth is registered with FINRA (US regulator) and is a member of SIPC, which protects your cash holdings up to US$250,000. This includes all transfers into your account, trade settlements, dividends, and other corporate action-related distributions in your Stake Wall St account balance until you make a trade, transfer, or withdrawal.

 

Australian Share Ownership (ASX)

When you invest in Australian shares through Stake AUS, your ownership is direct and transparent. You are issued a unique Holder Identification Number (HIN). This HIN directly verifies that you are the legal owner of your shares, meaning your shares are held directly in your name, providing a high level of security and clarity.

Wall St Share Ownership (US)

For your US share investments, Stake operates a custodian model. While your shares are held on your behalf by our US broker-dealer partner, DriveWealth, LLC, you remain the beneficial owner. DriveWealth is responsible for the custody of your cash and shares and maintains the records that identify your shares as belonging to you. They use sub-custodians like the Depository Trust Company (DTC) for US shares and the Bank of New York Mellon for US funds.

An important layer of protection comes from DriveWealth's membership with the Securities Investor Protection Corporation (SIPC). This protects Stake investors who own US securities for up to US$500,000 (including up to US$250,000 for claims for cash), regardless of your citizenship. It's crucial to understand that SIPC protects against the failure of a brokerage firm, not against a decline in the value of your investments. In the unlikely event that Stake were to close, you would still maintain access to all your cash and securities via DriveWealth.

 

Regulatory Oversight and Internal Measures

Beyond the specific mechanisms for share and cash holdings, Stake operates under robust regulatory frameworks. We are regulated by the Australian Securities and Investments Commission (ASIC), which sets strict standards for handling and protecting client funds.

Your funds are held in a segregated client trust account with a major Australian bank, entirely separate from Stake's operating accounts. This means your money isn't used for Stake's business operations and is protected in the unlikely event of Stake's insolvency. We also utilise industry-standard encryption and security protocols to protect your personal and financial information.