The investor assumes risk against First World Trader (Pty) Ltd (which we call counterparty risk) in respect to Fractional Share Rights (FSRs) only. The investor acquires FSRs through the issue of a contract for difference entered into directly with First World Trader as principal. However the counterparty risk is reduced by First World Trader's risk and hedging policy which ensures that we are always 100% hedged in respect of market exposure from investors trading through the EasyEquities platform.
Further to this, the Terms and Conditions set out in detail the insolvency protections which ensure client monies and profit are protected. Whole Shares belong to the investor and are kept separate from First World Traders estate and assets in the same way as they would be through any other JSE stockbroker, and so are also protected on insolvency.