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Unbiased advisors trying at custody platform choices past the large three (Schwab, Constancy and Pershing) ought to word the newest addition to Apex Fintech Options.
Apex introduced the agency acquired AdvisorArch, a portfolio administration firm with its personal rebalancer.
The custodian introduced its integration with AdvisorArch in August 2023. Along with easy portfolio rebalancing, AdvisorArch’s platform is supposed to assist advisors in supporting tax loss harvesting, direct indexing, fractional share buying and selling and managing concentrated inventory positions. AdvisorArch launched in 2022 and is the newest creation of RobustWealth co-founders Michael Kerins and Robert Cavallaro and a small group.
In January, Apex launched a new person interface for advisors known as Astra, and extra not too long ago, it introduced integrations with Advyzon in February. Apex has additionally not too long ago constructed out new capabilities, together with fractional buying and selling, direct indexing, digital account opening, and digital funding utilizing ACATS, amongst others.
In October 2023, Apex launched a brand new fixed-income investing platform.
Alois Pirker, founder and CEO of Pirker Companions, stated the acquisition of AdvisorArch represented a change in path for Apex, which was beforehand extra centered on integrations than acquisitions.
“They’re getting extra into that advisor house the place it’s good to have extra performance to ship to them to win that enterprise,” he stated.
Apex might want to put in additional work to construct out AdvisorArch now that the acquisition has taken place, Pirker stated.
“(This) might be a bonus as … you may construct right into a path that works … and make it extra becoming to your atmosphere,” he stated. “It’s on the cash. That is the place this sort of platform ought to be going.”
Pirker stated Apex’s acquisition reminded him of when TD Ameritrade acquired portfolio rebalancer iRebal in 2007.
“They personal the piece,” he stated. “That has a bonus. … It’s an analogous technique that TDA had again within the day.”
William Trout, director of securities and investments practices at Datos Insights, stated with the custody enterprise evolving, the wants of impartial advisors are “a lot broader and deeper than they have been even a couple of years in the past.”
“Companies attempt to purchase that complete toolkit for the monetary advisor to allow cradle-to-grave assist for these advisors who’re impartial and people who are pondering of breaking away,” he stated.
Consolidation among the many large three has opened the door to custodians like Apex to supply a better stage of service to smaller advisors who could in any other case really feel misplaced within the shuffle, stated Trout.
“They simply received’t get that sort of consideration from the bigger custodians,” he stated. “They received’t get the assist for his or her progress trajectory {that a} smaller custodian can present. There’s a gap.”
Though Apex needs to “unfold its wings,” Trout stated he didn’t see Apex placing any bigger custodians out of enterprise. As a substitute, this may present extra selection.
“For smaller practices that want end-to-end digital assist, together with for issues like customization and rebalancing, it’s an important mixture,” he stated.
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