Who owns the stock when I purchase shares on Passfolio?

Published on
27/3/20
by
Passfolio

Many Passfolio users ask us about who owns the stock they buy on the app. In this blog post, we want to answer your questions about this.  

When you buy or sell securities with a broker, such as Passfolio Securities, your name is rarely actually on the stock certificate. Instead, it is held in "street name", which means the broker holds the stock on behalf of the customer. 

There's no reason to worry, though - this is standard practice in the US and you still own the shares. Even though the stock is held by the broker, you have all ownership rights and are registered as the beneficial owner of the stock - every dividend and income that comes from the stock is yours.

It's important to note, however, that holding the stock in street name is not mandatory, and you can request to have the stock registered in your name. However, holding stock certificates is not advisable and it does not change the beneficial owner's rights - in general, this only makes trades more complicated and may result in additional fees.


About Passfolio


Passfolio is what you call an Introducing Broker - we do not hold any of our users' assets. Instead, assets purchased via the app are all held by our clearing broker partner DriveWealth. Our users are still the actual owners and beneficiaries of the stock they purchase and have all the rights associated with the assets.

 

Invest in US stock with Passfolio


With Passfolio, you can start investing in US stock with as little as $1 - all with no commission fees¹². We make investing in US assets accessible and even accept local deposit methods such as TEDs. 


Download Passfolio on the App Store or on Google Play. Find out more at www.passfolioapp.com 


¹ Please see our fractional shares disclosure.

² Please see our disclosures on other charges.

Please read important legal disclosures that apply to your relationship with Passfolio.