What is a custodian bank?

Learn what a custodian bank is.


A custodian bank is a financial institution that is responsible for the safekeeping of assets, including stocks and shares. They are often known simply as ‘custodians.’

Keeping someone’s stocks safe may sound straightforward but it comes with a whole host of responsibilities.

Custodians will usually be responsible for handling all the bureaucracy that comes with buying and selling stocks. That includes any tax issues, dividend payments or foreign exchange transactions that need to be carried out.

It’s worth noting that a custodian is largely concerned with the mechanics of investing. So if you store cash with a custodian, it’s not like holding a regular bank account that would let you go to an ATM and withdraw money.

In fact, custodial services are distinct from regular banking services. Though there are banks that offer a range of services, their custodial operations will be separate from any consumer or commercial banking services, such as lending or operating bank branches.

More terms

Withholding Tax
Read More
Total Return
Read More
Over-The-Counter (OTC)
Read More
Key Information Document (KID)
Read More
Global Investment Performance Standards (GIPS)
Read More
Time-Weighted Rate of Return (TWRR)
Read More
Pick the plan that suits you best
Save 17% when you choose an annual subscription.
Basic
£0.00
/Month
Accounts
  • White check mark
    General Investment Account
Benefits
  • White check mark
    A great way to try Freetrade before transferring your ISA or pension
  • White check mark
    Unlimited commission-free trades. Other charges may apply.
  • White check mark
    Trade USD and EUR stocks at the exchange rate + 0.99% FX fee
  • White check mark
    Access to a selection of Freetrade’s 6,200+ global stocks and ETFs
  • White check mark
    1% AER on up to £1,000 uninvested cash
  • White check mark
    Fractional US shares
  • White check mark
    Access to mobile app and web platform
Standard
£4.99
/Month
£59.88 billed annually
Accounts
  • White check mark
    General Investment Account
  • White check mark
    Stocks and shares ISA
Everything in Basic and:
  • White check mark
    Access to 6,200+ global stocks and ETFs, including gilts
  • White check mark
    A lower FX fee of 0.59% on non-GBP trades
  • White check mark
    3% AER on up to £2,000 uninvested cash
  • White check mark
    Early market access with pre-market trading
  • White check mark
    Automated order types, including recurring orders
  • White check mark
    More stats and analysis, including analyst ratings and EPS estimates 
Plus
£9.99
/Month
£119.88 billed annually
Accounts
  • White check mark
    General Investment Account
  • White check mark
    Stocks and shares ISA
  • White check mark
    Personal pension
Everything in Standard and:
  • White check mark
    A lower FX fee of 0.39% on non-GBP trades
  • White check mark
    New! Access to mutual funds
  • White check mark
    Priority customer service
  • White check mark
    5% AER on up to £3,000 uninvested cash
  • White check mark
    Free, same day withdrawals
Basic
£0.00
/Month
Accounts
  • White check mark
    General Investment Account
Benefits
  • White check mark
    A great way to try Freetrade before transferring your ISA or pension
  • White check mark
    Unlimited commission-free trades. Other charges may apply.
  • White check mark
    Trade USD and EUR stocks at the exchange rate + 0.99% FX fee
  • White check mark
    Access to a selection of Freetrade’s 6,200+ global stocks and ETFs
  • White check mark
    1% AER on up to £1,000 uninvested cash
  • White check mark
    Fractional US shares
  • White check mark
    Access to mobile app and web platform
Standard
£5.99
/Month
billed monthly
Accounts
  • White check mark
    General Investment Account
  • White check mark
    Stocks and shares ISA
Everything in Basic and:
  • White check mark
    Access to 6,200+ global stocks and ETFs, including gilts
  • White check mark
    A lower FX fee of 0.59% on non-GBP trades
  • White check mark
    3% AER on up to £2,000 uninvested cash
  • White check mark
    Early market access with pre-market trading
  • White check mark
    Automated order types, including recurring orders
  • White check mark
    More stats and analysis, including analyst ratings and EPS estimates 
Plus
£11.99
/Month
billed monthly
Accounts
  • White check mark
    General Investment Account
  • White check mark
    Stocks and shares ISA
  • White check mark
    Personal pension
Everything in Standard and:
  • White check mark
    A lower FX fee of 0.39% on non-GBP trades
  • White check mark
    New! Access to mutual funds
  • White check mark
    Priority customer service
  • White check mark
    5% AER on up to £3,000 uninvested cash
  • White check mark
    Free, same day withdrawals

You’re just minutes away from commission-free investing

When you invest, your capital is at risk