If you are one of the millions of people with share certificates stored at home - beware.

One Money Box listener recently lost her certificate for �30,000 worth of shares in National Grid.

When she called the company they told her to ring the registrars for a replacement, the cost totalled nearly �100.

What are share certificates?

They are simply evidence of the fact you own shares in a company - but nothing more than evidence.

The list of shareholders held by a company's share registrar is a more definite proof of ownership.

What happens if certificates are lost?

As the certificate itself is only evidence, it can be replaced by a companies' registrar.

Call the company secretary's office of the firm you own shares in and ask for the number of the registrar.

The registrar will usually provide you with a 'form of indemnity'. This is simply a piece of paper you sign to declare you are the rightful owner of the shares.

This form will usually cost around �20. But it needs to be counter-signed by a bank, insurance company or trustee company - essentially an insurance policy for the registrar - in case the title to the shares is disputed.

This is much more expensive with prices ranging from �20 to �90 depending on the value of the shares.

What alternatives to share certificates are there?

To buy and sell shares you must operate via a stockbroker whether you use certificates or not.

The alternative to certificates is using a nominee account. With these, technically the broker owns the shares and the investor only has the rights to beneficial ownership.

In other words they are entitled to the cash from the sale and the dividend payments.

Why would you choose a nominee account?

First of all there is no risk of losing certificates as your stockholdings are simply a digital account held at the stockbroker.

It also substantially speeds up dealing - settlements are much quicker. However the main benefit is cost.

Buying or selling shares is much cheaper in nominee accounts.

For �2000 worth it would cost roughly �25 through a share certificate dealing, but as low as �7 with a nominee account.

However there are a couple of possible charges to note. Many, but not all nominee accounts charge an annual fee, they also charge transfer fees if you want to switch stockbroker.

This can leave you trapped in due to the cost of moving even if your broker increased its dealing charges.

Are there any other draw backs to nominee accounts?

As you do not own the shares directly, you are not automatically entitled to receive annual reports, vote in company decisions or gain any perks or discounts offered to shareholders.

Some nominee accounts will allow you these benefits if you ask them - so it is worth checking out.

A few nominee accounts operate a special service called "Crest personal membership" in which case you will have the same rights as share certificate holders but within an electronic format. But this tends to add to the cost.

How much does it cost to switch my certificates to a nominee account - is it worth it?

Most nominee account brokers will switch you for free in order to gain your business.

Whether you should do it depends first on if you think you are likely to lose your certificates and second on your priorities.

If being an active shareholder and gaining all the rights and benefits of shareholders is important to you - then either stick with certificates or look for Crest personal membership.

If the priority is the cost of buying or selling shares you are almost invariably better off in a nominee account.