Devon’s RIA Custodian Context Research


Top Tier Custodians


Schwab

  • Largest, oldest

  • Lowest fees due to highest economy of scale

Fidelity

  • Emphasizes proprietary "Wealthscape" platform (rooted in their purchase of 'eMoney Advisor').

  • A more unified "set it and forget it" tech ecosystem.

TD Ameritrade

  • More open tech environment, less emphasis on their own proprietary software.

  • Customizable ecosystem, integrated with more APIs.

Pershing

  • Focuses on largest RIAs with ultra-high net worth, $100's of millions


Second Tier Custodians


  • 10-100x smaller than one of the big four

  • More expensive due to less economy of scale

  • More focused on a niche, seeking to fit extremely well with certain types of advisors.

  • Most do not have a retail segment that could potentially compete with the RIA's they serve.

SSG

  • https://www.ssginstitutional.com/

  • Built on top of Pershings

  • Rare: no asset minimum required to join the platform (the big 4 have aset minimums in the 10's of milions)

  • More expensive in terms of ticket costs and other feeds

  • Startup friendly

Trade PMR

  • Emphasis on technology

  • RIAs can manage accounts almost entirely on a mobile device

  • "Fusion" platform has a dashboard based highly on Windows.

  • Trust Company of America / Axos

  • "Liberty" platform for portfolio management, is also white-label-able 

  • Good for "turnkey asset management" specializing in model portfolios

Folio Institutional

  • Can handle fractional shares

  • More API integration than most others

Apex Clearing

  • Most technologically capable. (Real-time validation for "Not in Good Order" paperwork, rather than waiting a few days for the NIGO notice.)

  • A network of APIs that provide services through other interfaces.

Millenium Trust

  • Emphasizes nontraditional assets

  • National Advisors Trust

  • RIA custodian co-op, most RIA's become shareholders.