What is Custody?

Custody answers a simple but crucial question: who is actually holding your money? It is one of the most important distinctions between platforms, and it shapes how much risk you take on beyond the market itself.

What custody means

In a custodial model, you deposit your money into a platform or a brokerage it controls, and that entity holds your funds. In a non-custodial model, your money stays in your own regulated brokerage account, and the platform can route trades but never holds or withdraws your cash. The difference matters because when a platform takes custody, you are trusting it with your funds directly, on top of the normal risks of trading.

Why it matters in copy trading

Custody is arguably the biggest safety difference between copy-trading platforms. Some require you to deposit into their brokerage; others copy into the account you already own. RelayTrades is non-custodial: it connects to your existing brokerage through a secure aggregator, routes the trades you choose into your own account, and never holds your funds. You keep custody and control, and you can revoke the connection at any time. This does not remove market risk, but it removes the risk of handing your money to the platform itself.