Dan Malone

or any sort of financial investment using a broker.

What the investing platform will do is they will keep those shares safe in a separate entity or a separate account that's completely outside of the investing platform's business itself.

The reason why that's important is because if the investing platform held or kept the

client assets on their own books.

If anything was to happen to them, they went under.

Technically, the people who they owe money to could claim those assets to repay their debts, which obviously is not good.

For the company.

Yeah.

So one common format is the investing platform will come along and they might set up a separate company, a special purpose vehicle or SPV,

And this separate company has no shareholders, it has no owners, and its sole purpose is to hold the investing platform's clients' investments and to keep them safe.

So if anything happens to the investing platform itself...

no issues.

Those investments are completely safe off in their own company and they'll be returned to you once all the dealings have kind of been sorted out.

And again, because these are required and regulated under EU law, it's very, very difficult for them to fail in the first place.

So moral of the story is it is a very safe practice.

Yeah, and just check the fees and charges because it's important.

And specifically, you know, we can talk about investing strategies and things like that, but you particularly want to define what it is you're trying to do with the app because a lot of the times the fees and charges that apply may be different for different activities.

So like,

If you're someone who's interested in just like automating investments into an ETF, the fees and charges that are applicable to that activity might be different to, say, actively trading stocks on a day-to-day basis.

And so that's why it's important.