Investing in the Australian Securities Exchange (ASX) is an attractive option for many traders due to the diversity and potential profitability of the market. As you consider diving into ASX shares, it’s crucial to choose a brokerage firm that not only provides excellent service and tools but also ensures the safety and security of your investments. Tiger Brokers, a prominent Australian stock brokerage firm, offers a robust platform for trading ASX shares, with CHESS sponsorship being one of its standout features. Here’s what you need to know about dealing with ASX shares through Tiger Brokers and the importance of CHESS.
What is CHESS?
CHESS, or the Clearing House Electronic Subregister System, is a system developed by the ASX to manage the settlement of share transactions and to maintain records of share ownership. This system plays a critical role in the Australian market by ensuring that share transactions are processed efficiently and securely.
Why is CHESS Important?
CHESS sponsorship is vital for several reasons, especially for investors looking to trade ASX shares:
Security and Ownership
When you trade ASX shares through a CHESS-sponsored broker like Tiger Brokers, your shares are registered directly with the ASX under your name, accompanied by a unique Holder Identifier Number (HIN). This setup means that you are recognized as the legal owner of the shares, not just the brokerage holding them on your behalf.
Transparency
CHESS sponsorship ensures a high level of transparency in share transactions. Each investor has a unique HIN that links to their specific shareholdings, making it straightforward to verify ownership and track the history of transactions.
Safety
The direct registration of shares provides a layer of safety not available in non-CHESS sponsored arrangements. In the unlikely event of broker insolvency, your shares are protected because they are held in your name, and the brokerage does not have access to your shares for its operational use.
Investing in ASX Shares with Tiger Brokers
Tiger Brokers makes it convenient and efficient to invest in ASX shares thanks to its integration with CHESS. Here’s how to get started and what to consider:
Setting Up Your Account
- Register and create an account with Tiger Brokers: Provide the necessary personal information and complete the verification process.
- Set up CHESS sponsorship: During the account setup, opt for CHESS sponsorship. You will be assigned a HIN that will be used for all your ASX investments through Tiger Brokers.
Trading and Managing Investments
– Access to Market Data: Tiger Brokers provides free click-to-refresh AU market data, which allows you to stay updated with the latest market trends and make informed decisions.
– Trading Tools: Utilize tools like top industries, heat maps, and active & hot lists of ASX stocks to identify investment opportunities and manage your portfolio effectively.
– Cost-Effective Trading: Enjoy competitive trading costs with Tiger Brokers, where you pay an AUD 3 flat brokerage fee for orders up to AUD 10,000, and 0.03% of the trade value thereafter.
Conclusion
Investing in ASX shares through Tiger Brokers offers a secure, transparent, and efficient trading experience. The CHESS sponsorship provided by Tiger Brokers ensures that your investments are safe and registered in your name, giving you peace of mind and full control over your assets. Whether you are a seasoned investor or just starting out, Tiger Brokers is equipped to support your investment journey in the ASX market.
