If you’re using a Robo-advisor, are the shares bought under your name or a custodian account?

Hey this is a great question, I dont think it was properly fleshed out by previous answerers.

On some robo platforms, the units (for unit trust platforms), or ETFs will be in your legal name. Meaning to say at the custodian bank level, the custodian banks will have a record of you being the legal owner.

On other robo platforms, it is more complicated. At the custodian banks level, they will see XXX company as the legal owner of the ETFs. The platforms will emphasise that this XXX company is ring-fenced from the company's operation funds, which is true.

The platform will have records of how many ETFs (up to the decimal points) are owned by each customer, and acknowledge that the customers are the legal owners of the fractional units. But this ownership of fractional units of ETFs is not something seen by the custodian banks.

This is just a fun fact on the technicality!

Custodian account.

Eg. Stashway:
Your cash deposits are held at a Trust Account at DBS Bank while your investable cash and securities are held in a custodian account through Saxo Capital Markets Pte Ltd

Source: https://www.stashaway.sg/faq/115003871648-where...

In practice, if both StashAway and Saxo go bankrupt, customers’ holdings are still safe. The fact that MAS awarded to Stashaway a full CMS license for Fund Management and that therefore they need to comply to very strict audit, compliance and minimum capital requirements should give comfort to investors.