For Hatch customers, ownership and control are very important and we take it seriously.
When you sign up to Hatch, you get your own US brokerage account with our US broker, DriveWealth. You own your shares directly, which means:
Full shareholder voting rights on any whole shares you own
The ability to transfer your shares in and out of Hatch without having to sell them (we'll help cover some of the fees charged by your old broker if you move your shares to Hatch)
A real say! In conjunction with our partner Say, Hatch investors are able to submit and up/downvote questions to the quarterly calls of companies like Tesla, Palantir, Microsoft and Spotify. The top 5 questions are addressed by company leaders during the call.
Your shares are held In Street Name
Your shares are purchased through your own individual brokerage account, but 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. The practice of In Street Name removes the need to match each share certificate to each customer, which makes settlement faster and reduces the risks in comparison to transferring physical share certificates.
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.