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Until the mid-1990s, securities were still traded physically – you received stocks and bonds as printed certificates. As a rule, your bank stored these documents securely in a physical securities deposit, i.e. a vault. Today, physical securities are the exception: since mid-August 1996, trading has been conducted electronically.

Why do you need a custody account?

Since investors buy and sell their securities digitally, they also have a “virtual storage location” for their securities: a digital custody account. If you want to buy and sell shares, investment funds, bonds or precious metals, you need a custody account and a connection to a settlement account.

What is the difference between a custody account and a personal account?

Your personal account is the basis for your banking transactions – your custody account is used to store and trade securities and precious metals. The two accounts function differently, but both work to the same end: your financial flexibility.

Types of custody accounts

The custody account is the ideal solution to securely store and manage your securities. There are the following types:

Individual custody account
This account has only one holder. If you have authorized other persons, they also have the right of disposal, but they are not owners.

Joint custody account
A joint account is suitable for married couples, for example. Both spouses, i.e. both owners, manage their account on equal terms and both can access it and place buy and sell orders.

Just like a bank account, a custody account must first be opened. You can do this online or at a branch, depending on the provider. At �۶���Ƶ, you can open your custody account either with your client advisor or via our digital key4 offering. It must be linked to a settlement account, also called a reference account, on which purchase and sales orders are settled and to which investment returns (dividends, interest) are credited.

Once you’ve opened your account, you can buy or sell the desired securities in �۶���Ƶ Digital Banking.

If you do not want to buy or sell stocks, investment funds, bonds, precious metals, etc. yourself, you can transfer the investment responsibility, i.e. portfolio management and securities trading, to specialists.

Costs and fees

A custody account is associated with various services. These vary depending on the provider.

Prices for account management also vary. At �۶���Ƶ, for example, they are based on the value of the portfolio.

A custody account provides you with access to various asset classes and the global financial markets, along with the associated investment opportunities.

You can then be sure that all your transactions will be handled professionally. It means that you do not need to keep track of interest and dividend income yourself, as providers like �۶���Ƶ take care of that for you. The same applies to capital increases, stock splits and similar events.

If you have a custody account with �۶���Ƶ, you can benefit from additional services such as the management and custody of precious metals. You also receive a detailed statement of assets at the end of every year.

Your investment instruments are secured in the custody account against loss due to theft or cybercrime. Increased protection is also ensured by strict legal regulations for managing custody accounts, such as the Swiss Federal Act on Banks and Savings Banks and the Swiss Federal Act on Intermediated Securities.

Custody accounts are the basis for anyone who wants to trade securities and store them securely. As a depositor, you benefit not only from access to the market, but also from a variety of other advantages. In Switzerland, custody accounts are subject to strict legal regulations, which ensure particularly high protection. But not all accounts are the same. Services and costs can vary significantly depending on the provider. A careful comparison of offers is therefore worthwhile.