Proof of stock ownership

🤝 Help
1

Hi,

I am using the “Invest” part of trading 212.

I am new to all this.

How can I verify that I really own a stock unit?

For example what happens if all the trading212 data is lost?
Or if there was an error on tradind212 and a certain transaction is not accurate.

is there a 3rd party which keeps a record of shares ownership?

I am looking to find information about full shared. I don’t care about fractional shared.

I see some transactions are made via the stock exchange, but others are over the counter.

Thanks!

2

Yes they are indeed real shares. You have the beneficial ownership of these shares so I wouldn’t worry about any issues with the system

3

I don’t think there is a worry about the data as it is handled with IB so they should have the records of ownership as well.

4

I wouldn’t worry about any issues with the system

Why not worry?

Even NASA makes mistakes and errors, including big mistakes in which human lifes are lost.

And tradind212 can go out of business at any time.

don’t think there is a worry about the data as it is handled with IB so they should have the records of ownership as well.

OK. But I can I double check those records?

5 Likes
5

Hello @adiroiban,

I understand your concern, I always found it strange for folks to question less known or free service entities. But accept every day general services without much investigation…

One could ask same question for banks, if you store XYZ $ what if their data center gets wiped. Your data gets lost, how do you prove anything? Obviously not.

Without knowing the stock share business, each business has certain compliance to meet. I presume that any business that wants to be sustainable and successful would adhere to thouse standards.

So in this specific query we have 2 3rd parties involved.

Bank which has segregated account where the free funds are protected. Which is Barclays bank.

Second entity is Interactive Broker’s which is custodian to your equity.

You can do some background on both institutions.

Other information you can read:

11 Likes
6

Hi @Vedran

Thanks for clarifying the bank account matter. That part is already well documented on the website.

I was missing the Interactive Broker part and this is not clearly explained on the main website.

I think that the proof of stock ownership is still not clear.

This might not be a trading212 specific issue but an Interactive Broker, but I think it is worth having this info here…

For example, if I purchase a product from Amazon using my card, I get a statement from my bank that the transfer was made and an invoice from Amazon to confirm that I made the purchase.
This is some sort of proof that I made the purchase and a confirmation from the seller.

It is still no clear how I get this proof of stock ownership from trading121 or InteractiveBroker

For example, I purchase 10.000 Apple stocks from entity “Y”.
I guess that the purchase bank transaction with the actual money amount is recorded by Barclays.
But where is the proof from entity Y that they sold me 10.000 shares?

4 Likes
7

This is an interesting question. I guess that each stock sold should have a specific code / number to identify it (as prove that it’s unique) and that there should be a database to check if that stock really belong to you (indipendently by the broker you used to purchase it)…but this is only my common sense and probably this is not the way things really work in the real world

1 Like
8

You are basically describing the blockchain.

9

I would be much happier if all these trade exchange magic goes to a blockchain.

and before someone comment on this… Blockchain is not Bitcoin :wink:

2 Likes
10

…but I guess that there is some way to identify that the stock you have guess really exist, otherwise a lot of frauds would happen

11

Every time you buy shares you get an receipt sent to your e-mail confirming who you bought shares from, how many and how much it cost. Also any fees. That is your proof

12

Based on this: https://helpcentre.trading212.com/hc/en-us/articles/360008702918-Do-I-own-the-shares-which-I-purchase-

You do not own the shares that you buy.

13

You will receive by email every time you buy or sell shares, a report from Trading 212.

14

T212 (like many others) use an omnibus account to hold shares. T212 has an internal registry of who owns what. Even though all shares are pooled in the same account.

This is a standard practice so I would not be extremely worried about this.

1 Like
15

Maybe this too it will help you: ”You can request a certificate of your shares, at any time you like by dropping an email on info@trading212.com and we’ll gladly provide you with a confirmation of holding your investments.”

16

Thanks for the replies.

I am thinking about opening an account on Trading 212. I need the opinion of people who already use the service (Trading 212 Invest).

  1. I have done my research however the only thing I cannot be sure about is the functionality of the app. I have read online that the app crushes really often. Is that true?

  2. The max compensation is max 20k for EU. Is that right? (source: https://www.trading212.com/en/Company-Overview)

I need to know from people that use the service if they are covered and happy.

Is the app crashing all the time?

Are the transactions instant?

18

I don’t know how you have reached that conclusion as it is incorrect.

As the article says T212 hold the shares on your behalf ie you own the shares otherwise the “on your behalf” part wouldn’t be necessary/correct.

19

Ok maybe I am wrong on this part, however may I ask if you have the right to vote when the Annual Meeting of the companies that you “own” take place? This is the real proof that you own the shares that you buy.

20

It depends on the arrangements that T212/IB and company have to deal with nominee accounts and demonstrating proof of ownership.

A lot of the time it is more difficult to arrange just because of the intermediaries (nothing to do with whether you own the stock or not).

21

I see. Any idea about my questions here: Proof of stock ownership ?