Choosing trading and rebalancing software should reflect your business’ and clients’ needs. While there are many options for integrated software platforms, it is critical to choose based on what the software can do for you. As ‘transactional advice’ continues to decline, accurate AUM based billing for financial advice puts your reporting and trading and rebalancing systems accuracy to the test.  Using software that automates the process and is in alignment with your management philosophy greatly increases accuracy and reduces the potential for loss of revenue.

Technology has taken center stage as competition continues to increase in our industry. ROI should easily be measured in time and resource savings to your firm. Through our experience at AdvisorPeak, we have come to know  that few if any other software investments will provide a return better or more important to your business than trading and rebalancing software. The software you are considering should address the following questions:

Should trading and rebalancing be automated? All software should automate your trading and rebalancing, but which one is right for you? It is up to you to investigate options that fit your needs. Consider these required options:

  • Trading minimums and thresholds
  • Multiple levels of approval for trading and compliance oversight
  • Consideration of held-away assets
  • Ability to tag securities for restrictions
  • Management of portfolios at the household level
  • Long/Short-term tax efficiency management

Does the software allow for cash management? Not all software allows for cash management. Additionally, cash management at scale involves liquidating and repurchasing shares with visibility whenever you need it- regardless of the cash position:

  • Monitor cash needs and dollar-cost averaging schedules.
  • Specify account cash requirements, distributions, and withdrawals.

Is Tax Management an included feature? Tax-loss harvesting, and tax planning are critical to your clients and consider prior to any trade. If your software does not present anticipated tax outcomes, your clients face tax consequences that likely were avoidable. Additionally, the software should alert you to trading opportunities and allows you to decide when to trade.

  • Household-level tax management rebalancing.
  • Buy location preferences.
  • Tax-loss harvesting and buy replacement capabilities.

Can you customize your portfolios? Your trading and rebalancing software should allow you to create unlimited model portfolios containing all asset classes or choose standard models from the custodian. Scalable trading and rebalancing should accommodate either option since your client portfolios may require both.

When firms grow, they cannot manage all of these by hand and require an efficient trading and rebalancing tool. AdvisorPeak easily integrates with your tech stack today and will scale with your business. Contact us for a demo to learn more about enhancing your trading and rebalancing experience, leaving you more time with clients.