Security of your assets with Stake

At Stake, the security of your investment is paramount, and we employ multiple measures to ensure your assets are protected across all aspects of your investing journey.

Where is the USD cash held?

Your USD is maintained within your U.S. account by DriveWealth, our U.S. broker-dealer partner. DriveWealth is registered with FINRA (U.S. regulator) and is a member of SIPC, which protects your cash holdings up to US$250,000. 

This includes all transfers into your account, trade settlements, dividends and other corporate action-related distributions that are in your Stake Wall St account balance until you make a trade, transfer or withdrawal.

You can read more about SIPC on their website.

Wall St Share Ownership (US)

For your US share investments, Stake operates a custodian model. While your shares are held on your behalf by our US broker-dealer partner, DriveWealth, LLC, you remain the beneficial owner. DriveWealth is responsible for the custody of your cash and shares and maintains the records that identify your shares as belonging to you. They use sub-custodians like the Depository Trust Company (DTC) for US shares and the Bank of New York Mellon for US funds.

An important layer of protection comes from DriveWealth's membership with the Securities Investor Protection Corporation (SIPC). This protects Stake investors who own US securities for up to US$500,000 (including up to US$250,000 for claims for cash), regardless of your citizenship. It's crucial to understand that SIPC protects against the failure of a brokerage firm, not against a decline in the value of your investments. In the unlikely event that Stake were to close, you would still maintain access to all your cash and securities via DriveWealth.

Regulatory Oversight and Internal Measures

Beyond the specific mechanisms for share and cash holdings, Stake operates under robust regulatory frameworks. We are regulated by the Australian Securities and Investments Commission (ASIC), which sets strict standards for handling and protecting client funds.

Your funds are held in a segregated client trust account with a major Australian bank, entirely separate from Stake's operating accounts. This means your money isn't used for Stake's business operations and is protected in the unlikely event of Stake's insolvency. We also utilise industry-standard encryption and security protocols to protect your personal and financial information.