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Is Easy Equities safe? Opinions?

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Christine Swart:
Hi Patrick, I'm interested in the Easy Equities USD account.  Have you looked at the question of who would have to go bust for me to lose my shares?  Because I understand the shares will actually remain in someone else's name, not mine?  And if so, who is that?  First World Trading, i.e., Easy Equities?  Or a US Bank (maybe Citibank, which would make me feel ok maybe)?  Or someone else?  And is this something I should be worried about?  I've been told that if I use PSG they're a lot more expensive, but the shares end up in my name?       

gcr:
Christine - to my knowledge the company in whom you had bought shares would have to go bust before you lose your shares. There are 2 ways of holding your shares (all digital these days) - either in nominees (which I have done all my life) or you have them registered in your own name (most people go this route) your holdings are as such registered in your name in the companies share register. Shares in your own name or nominees can only be sold upon your instruction (over a platform with your broker or by written instruction) so your holdings are relatively safe subject to dishonesty by a hacker or broker - brokers carry insurance for these events
So not sure where you are coming from with your questions but hopefully the above does explain that there are some checks and balances in place to protect your holdings 

PlatinumWealth.co.za:
In easy equities the shares are in your name only the fractional shares are not - iirc. So if they go bust you still own the shares.

Samurai:
I prefer using EE myself, as far as I am aware should Purple the parent company of easy equities go bust than the shares I bought through them will still be registered in my name and simply transferred to another broker of my choice.

If I may ask why the concern over Purple/EE, Sanlam bought 30% of EE and purple's management did make a statement a year or two ago in which it would take three years and more for the platform to grow and become profitable. With investors like Sanlam I don't see the risk in using EE.

Patrick:
Like everyone has said, it's safe as anything else. Gcr made a great point that you should worry more about the company who's shares you're buying, than the company you're buying them with.

I love easy equities, my and my sons TFSA are with them, but I'm not a fan of their USD holdings. They're far too expensive for my liking.

You'd get far better value for money looking into one of the foreign discount brokers. Do some research on Degiro and Interactive Brokers. You'll get far better value for money with them, but the setup process is a little more tedious.

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