For custodian accounts for share trading platforms - what will happen if the platform runs into trouble? - Seedly
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Anonymous

Asked on 21 Dec 2019

For custodian accounts for share trading platforms - what will happen if the platform runs into trouble?

What will happen to the accounts and the money inside?

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Leo Chin Ho
Leo Chin Ho
Level 4. Prodigy
Answered on 21 Dec 2019

As custodian account is considered having the records only on the company own server or data base, if the platform closes, you will have the risk of losing all the custodian shares/stocks. However, there are some platform whereby the risk is reduced where these company has the custodian stock/share backed by 3rd parties insurance, so you still can claim back a certain amount or even the full allocation.

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