When you buy ASX shares through Stake AUS, you are issued with a unique Holder Identification Number (HIN), which verifies that you directly own your shares.

If a broker does not issue a HIN, this means they use a custodial model for your holdings. 

The main difference between the two is that with a Custodial Model you do not directly own your shares but instead the broker uses a Custodian who keeps a record of every client’s holdings under a mega or special purpose HIN.

Essentially, the Custodian is the legal owner whereas you are the beneficial owner of the shares.

The downside of a Custodial Model can be that you have less direct control over your investment and less access to your holdings.