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Wall St share ownership
When you purchase shares through Stake, you own the shares. Most brokers and investing platforms (including Stake) operate on a custodian model.
The custodian ownership model means that your shares are held on your behalf by a trusted custodian. Our U.S. broker-dealer, DriveWealth, manages the books and records nominating your shares as being in your name, and appoints a custodian (Royal Bank of Canada) to hold your shares for you.
When you invest with Stake, your funds go directly to DriveWealth via our regulated FX partner, Airwallex. Find more information about Stake’s partners here.
Our U.S. partner DriveWealth, LLC is a broker-dealer registered with FINRA (U.S. regulator) and a member of SIPC, which protects Stake investors who own U.S. securities for up to US$500,000 (including US$250,000 for claims for cash). With an account at a brokerage firm that is a member of SIPC, your assets are protected whether you’re a U.S. citizen or not. You can read more about SIPC on their website.
Please note that SIPC does not protect against the decline in the value of your securities. SIPC gets involved when a brokerage firm fails and SIPC appoints a trustee to manage the liquidation of the firm for the protection of customers.
In the unlikely event of Stake closing, you would still have access to all your cash and securities via DriveWealth.
Stake Aus share ownership
When you buy ASX shares through Stake AUS, you are issued with a unique Holder Identification Number (HIN), which verifies that you directly own your shares. If a broker does not issue a HIN, this means they use a custodial model for your holdings.
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