Yes - your shares are purchased through your own individual brokerage account. But, for safety and convenience, your name is not on the share certificate.
The certificate will show that the shares are held "in Drive Wealth's name for the benefit of Hatch customers". This is a common practice in the US called In Street Name. Note: You aren't buying and selling CFDs, you're buying shares.
Why are my shares held In Street Name?
Holding your shares In Street Name doesn't diminish your rights as the owner. Electronic trading is only possible as a result of holding shares In Street Name. It removes the need to match each share certificate to each customer, which makes settlement faster and reduces the risk of loss and theft that comes with the transfer of physical share certificates.
It also lowers transaction costs, which makes it possible for Hatch to pass those savings onto you.
What does owning shares through Hatch mean for me?
There are a lot of share trading platforms cropping up around the place, so it's good to know the difference. We understand the importance of investment ownership!
When you sign up to Hatch, you get your own US brokerage account with our US partner, DriveWealth. This means you own your shares directly and get full shareholder voting rights on any whole shares you own. You'll also receive dividends (even on fractions of shares) for any shares you own as well as on any money sitting un-invested in Hatch.
Who knows how many shares I own?
DriveWealth manages the books and records of the shares, which means they have a record of the number of shares every Hatch customer has in each company and ETF.
You also have access to your monthly account statements and individual order confirmations from the reports section of Hatch. As with any investment, you should always review your confirmations and statements carefully to ensure they accurately reflect your understanding of what cash and shares are in your Hatch account.
Who custodies my shares?
Citi (Citigroup Inc) custodies your shares and is headquartered in New York City.
There are no custodial or management fees associated with your shares.