A rapid proliferation in the number of share trading platforms in the market has prompted warnings for investors to check in on the safety of their shareholdings to safeguard against a potential hack or company collapse.
He says investors can get overly focused on deciding on what investments to hold and not give much attention to security, but they should make sure the broker is “robust and stable” and using the best technology and infrastructure.Chris Brycki, the founder of online investment adviser Stockspot, says the single best thing share investors can do is to invest in Australian securities in their own name.
If something were to happen to their broker, the investors can simply move their securities to another broker that offers CHESS. Having a HIN also makes it easier to switch brokers to take advantage of lower brokerage costs, for example. US-listed tech stocks are particularly popular with the mostly younger investors who opened share trading accounts during the pandemic.The US market runs on a custodial model. The best practice is where the broker or a US-regulated entity it uses, such as a custodian, is a member of the Securities Investor Protection Corporation in the US.