What are the benefits of using a custodian?
At Superhero, we could follow the legacy brokers and use the system the ASX is desperately trying to replace. Instead, we carefully selected a custodian model to serve our customers better. Here’s why:
- Low pricing and transparent fees: We’re all about keeping things affordable and our fees in plain sight. By adopting the custodian model, we strip out unnecessary ASX fees that other brokers may choose to pass onto you in one way or another. We’re committed to offering a clear and sustainable fee structure from the start.
- Reducing communication overload: We understand that frequent investors can receive an overwhelming amount of communication containing their holding details from CHESS—sometimes up to 50 letters a month! With Superhero, we manage and consolidate these communications on your behalf, giving you a hassle-free, paper-free investing experience.
- Globally recognised model: Having a custodian is the globally-accepted operating approach used by most Australian superannuation funds but also by other reputable market players like IG Markets, Interactive Brokers, Spaceship, Pearler Micro and Stake (for U.S. shares).
- Compliant with U.S. operations: U.S. shares cannot be held in your name under a “CHESS-sponsored” arrangement as CHESS is an ASX-only system. Therefore, a custodian is used to safeguard your U.S. shares while offering you the full benefits of ownership.
- Seamless participation in corporate actions: Superhero can facilitate your participation in company offers directly. If you’re an eligible shareholder, we’ll promptly deliver the offer information to your email inbox for you to participate in things like share purchase plans and entitlement offers.
What is a CHESS-sponsored trade?
The term “CHESS-sponsored trades” has been bandied around by marketing teams of various brokers but what does this term actually mean? CHESS stands for Clearing House Electronic Subregister System. Basically, it’s a computer system operated by the ASX that facilitates the buying and selling of shares listed on the exchange by managing the settlement of share transactions and recording shareholdings.
In reality, there is no such thing as a ‘CHESS-sponsored trade’ as all trades in Australia, whether through ASX or Cboe (including those placed on Superhero), are cleared and settled via CHESS.
However, when people use the term “CHESS-sponsored,” they most likely mean that your shares are held by a market participant in your name on a Holder Identification Number, usually referred to as a ‘HIN’.
Applying for Payment – Financial Hardship
My SMSF has a Superhero account and the fund’s auditor has requested a report on Superhero’s internal controls.
Superhero can provide a copy of an audited controls report directly to your auditor for use in auditing your SMSF. Please reach out to us via Chat or email us at hello@superhero.com.au
How do I set a stop loss order with Superhero?
- Choose a holding from your portfolio and set ‘Order Type’ to ‘Stop Loss Order’.
- Set the trigger price. This is the price at or below which your shares or ETF units will begin to sell.
- Choose the number of units you would want to sell in case the price falls to or below the trigger.
- Tap ‘Review’ and check the details of your new Stop Loss Order.
- If you’re happy with it, submit it. You can always edit or delete the order later from your dashboard under the ‘Pending’ tab.
If you wish to change or cancel your stop loss order, log into your Superhero account and click on the ‘Dashboard’ tab followed by ‘Pending’.
You will be able to view and make changes to your stop loss order/s once you click on the order/s that you wish to amend.
Please note: Stop Loss orders are currently available for AU Trading only and valid for 180 days after you place the order.
What is a stop loss order?
A stop loss order is an order to commence selling a stock once the share price reaches a specified price, known as the ‘stop’ or ‘trigger’ price.
When the ‘stop’ or ‘trigger’ price is reached, a stop loss order becomes a market to limit sell order. For market to limit sell orders, an order will be placed at the price set by the highest buyer in the market at the time the order is placed and remains at that price until the order trades, or expires.
Stop loss orders are most commonly used by investors to assist in limiting downside risk.
Note, that because the trigger order will be a market to limit sell order, the price you receive may not be the exact price you set the trigger price at.
Example: You purchase a stock at $10 per share and you set a stop loss order at $8 to protect yourself from further losses. The trigger price is reached and your stop loss order is sent into the market as a market to limit order and to sell your shares at the best available price in the market and remains at that price until the order trades or expires.
Please note: Stop Loss orders are currently available for AU Trading only and valid for 180 days after you place the order.
