Do I own my shares?
Yes, you’re the beneficial owner of your shares. The owner on record might be Trading 212 or another intermediary entity, but you are still the beneficial owner.
What’s the difference between a beneficial owner and an owner on record?
A beneficial owner is a person who ultimately owns and controls the shares. They enjoy the full benefits of ownership, even though the shares might be registered in an intermediary’s name.
An owner on record is the registered owner. In stock trading, this is often an intermediary entity that holds the shares on behalf of the beneficial owner.
Where are my shares held?
Your shares are held in a pooled account at Interactive Brokers, one of the largest brokers in the world.
Pooled accounts are commonly known as omnibus accounts.
What’s an omnibus account?
An omnibus account is an account that holds the shares of multiple individual clients under one broker. It’s the industry standard most brokers use since it’s an effective way to hold client assets.
I want to know more
All brokers worldwide operate within a custody chain. From your point of view, Trading 212 holds your shares. However, there are more steps in that chain.
From Trading 212’s point of view, Interactive Brokers holds your shares. They then hold the shares in a custody chain, which can often be complex.
The central depository is always at the end of this long custody chain.
For example, the central depository for US shares is the Depository Trust Company (DTC). No matter which broker you’re using, the end custodian for US shares is always the DTC. The shares held by the DTC are always in the name of its nominee entity, Cede & Co. Cede is the registered owner of all publicly issued shares in the United States.
Learn more here.