We recently communicated to you about changes to the custodian for your international holdings. That change is the first step in something bigger: an upgrade to how you access and trade international markets on Selfwealth.
We know you may have questions about the change. This page covers the ones we're asked most often. If your question is not covered here, or you would like to talk through what this means for your own holdings, get in touch at support@selfwealth.com.au.
The change
Why is Selfwealth changing custodian?
We're rebuilding the international trading experience on Selfwealth to offer a best in class offering, and we've chosen a new custodial arrangement with the infrastructure to support it.
The new arrangement lets us bring you features that weren't previously available, and that our community kept asking for: fractional investing from as little as US$1, round-the-clock market access and instant FX conversion at live rates the moment you add your funds.
Bringing you these features meant moving to a new provider.
What is Fractional Investing?
Some US shares cost hundreds of US dollars for a single share. Fractional investing means you don't have to buy the whole share; you can buy a slice of one enabling you to diversify your investments more easily.
Put in US$1 or US$50, and you invest in exactly that much of the share. Your slice tracks the same live price as the full share, up or down, in proportion to what you hold, and when you sell, you sell at the live price too. You also receive dividends pro-rated to the fraction you own. On Selfwealth, fractional investing works across US stocks and ETFs from as little as US$1.
What is instant FX conversion?
To buy US shares, you need US dollars. Previously that meant transferring funds and waiting up to 48 hours for them to clear before you could trade.
With the new experience, you now instantly capture any opportunity in the market, real time. Convert Australian dollars to US dollars at the live exchange rate, shown to you before you confirm, and your US dollars are ready the moment the conversion completes. No forms, no waiting days for funds to clear.
What is round-the-clock market access?
Normal US market hours fall overnight in Australia. Round-the-clock access means you can place trades in US stocks and ETFs 24 hours a day, five days a week, so now you can trade during the Australian day rather than setting alarms for the middle of the night.
It helps you to respond instantly to earnings releases and company news that break outside regular US hours, without waiting for the next trading day and potentially facing unfavourable price gaps.
What does the change mean for me?
Your international holdings will migrate automatically to the new arrangement and you keep the same ownership you have today.
Once migrated, you will get to benefit from the enhanced international trading experience on the Selfwealth platform, such as:
- Fractional trading lets you invest in a slice of a share from as little as US$1, so the share price no longer decides what you can invest.
- Your Australian dollars convert to US dollars at the live rate the moment you add them, which means you can trade straight away instead of waiting for funds to clear.
- Extended US trading hours let you place and lock-in trades day or night, five days a week.
Who is the new custodian?
Your US securities will be held by Alpaca Securities LLC, trading as Alpaca Clearing, a US broker dealer headquartered in San Mateo, California, and will be held in the United States. As is the case today with PhillipCapital, your custodian is based overseas.
Alpaca is a member of FINRA, the Financial Industry Regulatory Authority, which oversees broker dealers in the United States, and a member of the Securities Investor Protection Corporation, known as SIPC. Alpaca provides custody and clearing services to brokers and investment platforms around the world, holding client assets on their behalf.
What role does HSBC Australia play?
We have set up a dedicated client account with HSBC Australia to hold the cash that sits behind your international investing. Any US dollars or Hong Kong dollars in your Selfwealth account will be transferred automatically to HSBC.
This cash will be held on trust as client money in a segregated account, kept separate from Selfwealth's own funds. It is your money, held on your behalf, and it is not used for any other purpose.
This allows us to offer instant FX and better FX rates to our customers. You can convert AU dollars to US dollars and vice versa at live rates.
HSBC holds cash while your shares will be held by our new custodian, and the two are handled separately.
Why does my personal information need to go overseas?
Your information already moves outside Australia under the current arrangement with PhillipCapital, and that continues rather than begins with this change. Alpaca needs your details so your holdings can be registered and administered in your name. Because Alpaca is based in the United States, the Privacy Act requires us to tell you that your information is being passed to a service provider outside Australia.
Alpaca is independently certified against ISO 27001, the international standard for managing information security, and is audited every year under SOC 2 Type 2 across all five trust criteria, covering security, confidentiality, availability, integrity and privacy. Alpaca also meets GDPR and UK data protection requirements.
Your information is encrypted both while it is stored and while it moves between systems. Alpaca's platform runs on Google Cloud, which holds its own security certifications, access to systems requires two factor authentication and is reviewed regularly, and backups are taken and tested daily.
Your holdings
Will I still own my shares?
Yes. You remain the beneficial owner of everything you hold, before, during and after the transfer. The transfer changes who holds your investments, not who owns them.
Are my holdings kept separate from Selfwealth’s and the custodian’s own assets?
Yes. This is already how your holdings are held with PhillipCapital, and the same structure carries across. Your securities are held by the custodian with you as the beneficial owner, separate from Selfwealth's own assets and separate from the custodian's own assets.
What investor protection applies to my holdings?
Alpaca Securities LLC, a member of the Securities Investor Protection Corporation (SIPC), serves as the sub-custodian for your US-listed securities account.
Securities in accounts carried and cleared by Alpaca Securities LLC are protected in accordance with the Securities Investor Protection Corporation (“SIPC”) up to $500,000 (including up to $250,000 for uninvested cash). Neither coverage protects against a decline in the market value of securities, nor does either coverage extend to certain securities that are considered ineligible for coverage. For more details on SIPC, or to request a SIPC brochure, visit www.sipc.org or call 202 371 8300.
Alpaca Securities LLC has purchased an additional insurance policy to supplement SIPC protection known as Excess SIPC Coverage. The additional insurance becomes available to customers in the event that SIPC limits are exhausted. The excess coverage provides protection for any Alpaca Securities customer up to $75 million in securities and $75 million in cash.
Will my share quantities and records transfer unchanged?
Yes. Your share quantities, acquisition dates, cost base and dividend records carry across unchanged.
Will this affect my tax position?
Your holdings move across as a stock transfer rather than being sold and repurchased, so the transfer itself does not create a capital gains tax event. Your acquisition dates and cost base carry over unchanged. If you are unsure how this applies to you, speak with your accountant or tax adviser.
Fees
Will my fees change?
Your fees stay exactly as they are today. As part of our upgrade to our US trading experience, we expect to be able to optimise our US trading cost in addition to delivering a better trading experience. We are currently reviewing this and we will share in due course the extent to which we are able to pass through cost savings in the form of a permanent discount/drop in our brokerage fees to our clients
Your options
The notice we sent set out two paths. Here is what each one involves:
| Option | What happens | What this means for you | What you need to do |
|---|---|---|---|
| Take no action | Your holdings transfer to the new custodian automatically, at no cost to you. Your consent is taken as given 30 days from the date of the notice. | You get the upgraded experience as it rolls out: instant FX conversion at live rates, fractional investing from as little as US$1, and round-the-clock US market access five days a week. You keep managing everything in the same Selfwealth account. | Nothing. |
| Stay with PhillipCapital | You continue to operate your account directly with PhillipCapital. | You leave the Selfwealth international experience. This means your International shares will no longer be visible or tradeable through the Selfwealth platform. You will need to set up the service offered by Phillip Capital, including their platform, fees and processes. | Let us know at support@selfwealth.com.au before 5pm on 30 September 2026. |
Is there a fee if I move my holdings to another broker?
Yes. PhillipCapital charges A$110 to process a transfer out. Your new provider may also charge to receive a transfer in, so it is worth checking with them before you commit.
There is no fee if you take no action and your holdings move across to the new custodian with us.
Will I be able to transfer my holdings elsewhere in future?
Yes, you can transfer out any time. You are not locked in. You can transfer your holdings to another international broker or custodian at any point in the future; a transfer fee applies.
The custodian change is also part of a bigger rebuild. Alongside the new US trading features, we're working on further updates, including a new Selfwealth web platform, rebuilt to improve your whole trading experience and rolling out progressively, and managed investing, a new way to invest on Selfwealth, with details to be announced. We'll share more on each as they get closer, and you'll hear about them first.
Can I transfer holdings into Selfwealth right now?
Not at the moment. While the move from PhillipCapital to the new custodian is underway, we are unable to accept requests to transfer holdings in from other custodians or international brokers.
This is temporary. Once the migration is complete, transfers will reopen and you will be able to bring holdings across as normal. We will let you know when that happens.
Will there be a blackout period where I will be unable to trade?
We don't expect one. We're working to make the transition as smooth as possible, without impacting your trading experience, and international trading is planned to continue as normal while holdings move across. If a short pause does become necessary at any point, we'll let you know in advance so you can plan around it.
Still have questions?
If anything here is unclear, or you would like to understand what this means for your own holdings, we are here to help.
- Live chat is the fastest way to reach us. Our chat assistant is available any time, day or night, and can connect you to an agent 24 hours a day, five days a week.
- Help Centre at help.selfwealth.com.au has answers to common questions and is available whenever you need it.
- Email us at Support@selfwealth.com.au and we will come back to you.
- Call us at 1800 577 502, weekdays from 10am until 6pm.
This information is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate to your needs and, where appropriate, seek professional advice from a financial adviser or accountant. Selfwealth Pty Ltd ABN 52 154 324 428, AFSL 421789.