CHESS holdings

martaart077 · 13 May 2020

Just trying to find out if chess sponsored holdings give the shareholder protection in case the stockbroker goes bust?

I think there are some discount brokers who don't offer chess sponsored holdings.....in which case is there more risk when using them?

What's the protection for domestic shareholders who buy shares internationally such as on the US market?

Smurf1976 · 13 May 2020

martaart077 said:
Just trying to find out if chess sponsored holdings give the shareholder protection in case the stockbroker goes bust?

US market I don't know about but for the ASX yes, you own the shares.

If the broker goes bust then you'll have some paperwork to sort out in selling them but ultimately they are your shares not the broker's.

I personally wouldn't use any brokerage arrangement that didn't give me ownership of the shares. That's an unnecessary risk in my view that there's no need to take given that there are plenty of brokers around who are indeed just middlemen, they facilitate the transaction but you own the shares.

The other thing I'll mention is price. What you want is first and foremost a broker that is reliable. It's no good having fancy features and so on if you can't actually buy and sell when you want to because their website can't cope on high volume days or whatever. Brokerage fees are important but it's more important to have reliability than a cheap price in my view. :2twocents

martaart077 · 13 May 2020

Smurf1976 said:
US market I don't know about but for the ASX yes, you own the shares.

If the broker goes bust then you'll have some paperwork to sort out in selling them but ultimately they are your shares not the broker's.

I personally wouldn't use any brokerage arrangement that didn't give me ownership of the shares. That's an unnecessary risk in my view that there's no need to take given that there are plenty of brokers around who are indeed just middlemen, they facilitate the transaction but you own the shares.

The other thing I'll mention is price. What you want is first and foremost a broker that is reliable. It's no good having fancy features and so on if you can't actually buy and sell when you want to because their website can't cope on high volume days or whatever. Brokerage fees are important but it's more important to have reliability than a cheap price in my view.

Thank you for u reply.
I was tempted to switch to IB but I read somewhere u shares are not chess sponsored.
Im thinking anything is possible these days so a bit of safety with the chess holding is the way to go for me.

CHESS holdings

martaart077

Smurf1976

martaart077

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