Proof of stock ownership

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!

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

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.

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?

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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:

9 Likes

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?

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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

You are basically describing the blockchain.

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:

…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

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