What is CHESS sponsorship in Australia?

CHESS (Clearing House Electronic Subregister System) is ASX's electronic share registry. A CHESS-sponsored broker registers your ASX shares directly under your name using a Holder Identification Number (HIN). You can see your holdings on the CHESS registry — they belong to you, not the broker.

What is the difference between CHESS and custodian brokers?

With a CHESS-sponsored broker, shares are registered in your name on the ASX's CHESS registry. With a custodian broker, the broker (or a related entity) holds the shares on your behalf. You have beneficial ownership in both cases, but with CHESS you have direct, verifiable ownership that isn't dependent on the broker's continued operation.

Is Stake CHESS-sponsored?

Yes. Hello Stake is CHESS-sponsored for ASX trades. When you buy ASX shares through Stake, they are registered under your own Holder Identification Number (HIN) on the CHESS system. This means you have direct ownership and can transfer your shares to another CHESS broker without selling them.

What happens to my shares if my broker goes broke?

With a CHESS-sponsored broker, your ASX shares remain on the registry in your name — a broker insolvency does not affect your ownership. You can contact ASIC or another broker to access your shares. With a custodian model, the shares are held in a pool by the broker or custodian. AFSL licence conditions require brokers to segregate client assets, but accessing shares during insolvency may be slower or more complex.

Are US stocks CHESS-sponsored?

No. CHESS is an ASX system for Australian-listed securities only. US stocks (on NYSE, NASDAQ etc.) are always held in custody by the Australian broker through their US clearing arrangements — there is no US equivalent of CHESS for retail investors. This is standard globally and applies to all Australian brokers offering US market access, including Stake.

Can I transfer shares between CHESS-sponsored brokers?

Yes. CHESS-sponsored shares can be transferred between brokers via an off-market CHESS transfer without selling them. The transfer does not trigger capital gains tax. It typically takes 3–10 business days. See our guide on how to transfer shares to Stake from Superhero or CommSec for the full process.

Updated June 2026 · Written by Jayme

CHESS Sponsorship vs Custodian: What Australian Investors Need to Know

When you buy ASX shares, who actually owns them — you, or your broker? The answer depends on which model your broker uses. Here's what CHESS sponsorship means, why it matters, and which Australian brokers offer it.

Key takeaways

·CHESS-sponsored brokers register your ASX shares under your own Holder Identification Number (HIN) on ASX's registry — you have direct, verifiable ownership.
·Custodian brokers hold shares in a pooled account on your behalf. You have beneficial ownership but shares are registered in the broker's name.
·If a CHESS-sponsored broker goes insolvent, your shares remain on the registry in your name. With custodian brokers, accessing shares during insolvency can be more complex.
·Hello Stake is CHESS-sponsored for ASX trades. Superhero uses a custodian model for ASX.
·US stocks are always held in custody regardless of broker — CHESS only applies to ASX-listed securities.

What is CHESS?

CHESS — the Clearing House Electronic Subregister System — is the ASX's electronic system for settling and registering ASX share transactions. When a share trade settles, ownership is recorded in CHESS. It's the authoritative registry for Australian-listed securities.

Every CHESS-sponsored investor has a Holder Identification Number (HIN) — an 11-character identifier starting with 'X' that links your shareholdings to you in the registry. You can view your holdings directly through ASX-affiliated registries (Link Market Services, Computershare, Boardroom) using your HIN and SRN (Shareholder Reference Number).

The key point: under CHESS sponsorship, your shares are on a government-administered registry in your name. They exist independently of your broker.

CHESS-sponsored vs custodian: key differences

CHESS-sponsored

Shares registered in your name on ASX's CHESS registry
You receive a HIN (Holder Identification Number)
Shares exist independently of your broker
If broker goes under, your shares are still on the registry
Can transfer shares to another CHESS broker without selling
You receive shareholder communications directly

Custodian model

—Shares held by the broker or a custodian entity in their name
—No personal HIN — you have beneficial ownership only
—Shares are commingled with other clients' holdings
—Insolvency may complicate share recovery (though AFSL rules apply)
—Transferring requires more steps — often sell, withdraw, repurchase
—Shareholder communications may not reach you directly

Important note: Both models are legal and ASIC-regulated in Australia. AFSL licence conditions require custodian brokers to segregate client assets from their own. Many investors use custodian brokers without issue. The CHESS model simply offers more direct, verifiable ownership.

Which Australian brokers are CHESS-sponsored?

Broker	Model	HIN issued?	Notes
Hello Stake (ASX)	CHESS-sponsored	Yes	Full CHESS sponsorship for ASX trades
CommSec	CHESS-sponsored	Yes	Australia's largest CHESS broker
nabtrade	CHESS-sponsored	Yes	NAB's online broker
SelfWealth	CHESS-sponsored	Yes	Flat-fee CHESS broker
Pearler	CHESS-sponsored	Yes	Long-term investing focused
Superhero (ASX)	Custodian	No	Shares held in FinClear custodian account
eToro	Custodian	No	CFDs and custodian model
Any broker (US stocks)	Custodian	N/A	CHESS doesn't apply to US markets

Verify current custody arrangements on each broker's website. Broker models can change.

What about US stocks?

CHESS only applies to ASX-listed securities. All US stocks held through Australian retail brokers are held in custody — regardless of whether the broker is CHESS-sponsored for ASX.

When you buy Apple or Nvidia through Stake's Wall Street product, those US shares are held through Stake's US clearing and custodian arrangements. This is standard globally — there is no retail equivalent of CHESS in the US.

This means a Stake customer has two different ownership structures:

• ASX shares via Stake: CHESS-sponsored, registered under your HIN
• US shares via Stake Wall Street: Held in custody through Stake's US arrangements

Both are protected under Stake's AFSL licence and ASIC oversight.

Open a CHESS-sponsored account with Hello Stake

Stake is CHESS-sponsored for ASX trades — your shares are registered under your own HIN. Free to open. Sign up with referral code jaymem884 for a free US stock + $10 trading credit.

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Frequently asked questions

CHESS (Clearing House Electronic Subregister System) is ASX's electronic share registry. A CHESS-sponsored broker registers your ASX shares directly in your name using a Holder Identification Number (HIN). You can verify your holdings on the CHESS registry — they belong to you, not the broker.