For years, Australian investors faced a tough choice: pay high fees for the safety of CHESS sponsorship (like CommSec), or accept the slightly higher risk of a Custodial model to save money (like Superhero).
In 2025, that trade-off is dead.
With brokers like Moomoo and Webull now offering CHESS sponsorship with rock-bottom fees, the landscape has changed. This guide breaks down who is who in 2025.
2025 Broker Status List
| Broker | Model | Ownership |
|---|---|---|
| Moomoo | ✅ CHESS Sponsored | Your HIN |
| Stake | ✅ CHESS Sponsored | Your HIN |
| CMC Invest | ✅ CHESS Sponsored | Your HIN |
| Webull | ✅ CHESS Sponsored | Your HIN |
| Pearler | ✅ CHESS Sponsored | Your HIN |
| Superhero | ❌ Custodial | Pooled |
| Betashares Direct | ❌ Custodial | Pooled |
| Vanguard Personal | ❌ Custodial | Pooled |
| eToro | ❌ Custodial | Pooled |
*Updated Dec 1, 2025. Webull and Moomoo are now fully CHESS sponsored.
What is CHESS Sponsorship? (The Vault Analogy)
Think of the ASX as a secure bank vault lined with safe deposit boxes.
- CHESS Sponsored: You get your own personal box (your HIN). Only you have the key. If your broker goes bankrupt, your box stays locked and safe.
- Custodial: The broker has one giant box. They put your shares in there mixed with everyone else's. They keep a spreadsheet saying "10% of this box belongs to Steven". If the broker fails, you have to wait for the lawyers to unlock the main box and sort out the mess.
✅ Why Choose CHESS?
- + Safety: Unaffected if broker goes bust.
- + Control: You get voting rights & letters directly.
- + Portability: Easy to switch brokers later.
⚠️ The Custodial Risk
- - Counterparty Risk: You rely on the custodian's solvency.
- - Tax Complexity: Tax reports may not pre-fill in MyTax.
- - Transfers: Harder to leave the platform.
The 5 Key Differences You Need to Know
1. Investor Protection (The Big One)
History has taught us that custodial models can be messy. When Halifax Investment Services collapsed, investors waited years to access their funds. With a CHESS broker, you can simply transfer your HIN to another broker in days.
2. Tax-Time Experience
With CHESS brokers, the share registries (Computershare/Link) report directly to the ATO. This means your dividend income often pre-fills in your tax return. With Custodial brokers, you often have to manually enter data from an annual tax statement, increasing the risk of errors.
3. Transparency & Control
CHESS investors receive dividend payments directly into their bank account. Custodial investors have dividends paid into their "platform wallet," where it sits earning 0% interest until you remember to withdraw or reinvest it.
The Verdict: What Should You Do in 2025?
There is almost no reason to choose a Custodial broker for ASX shares anymore.
Previously, you might have chosen Superhero or Betashares Direct to save on fees. But now that Moomoo and CMC Invest offer CHESS sponsorship with fees as low as $3 or $0, the "Custodial Discount" is gone.
For long-term peace of mind, stick with a CHESS-sponsored broker.
Find the Best CHESS Broker
We've ranked the top 5 CHESS-sponsored brokers by fees and features. See who wins in 2025.
View Broker Rankings