CHESS Sponsored vs Custodial Brokers
Australian brokers typically hold shares for you using one of two models: CHESS sponsorship or a custodial nominee structure. They have different implications for ownership, cost and transferability.
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CHESS sponsorship
Shares are registered in your name on the ASX subregister via a Holder Identification Number (HIN). You receive CHESS holding statements.
Custodial model
Shares are held in the broker's nominee account on your behalf. Fees can be lower, but ownership is exercised through the broker.
Key differences
- Direct ownership and registration (CHESS) vs beneficial ownership through a nominee (custodial).
- Transferability between brokers.
- Fee structure and minimum trade sizes.
- Counterparty considerations.
Frequently Asked Questions
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Our editorial team researches trading platforms, market education topics and scam warning signs for Australian readers. Our content is general information only and does not consider your personal objectives, financial situation or needs.
General information only. Trading involves risk and may not be suitable for all Australians.