Altruist Cuts Fees to Boost Appeal with Financial Advisors

Altruist, a start-up custodian, has announced that it is reducing fees in order to enhance its appeal among financial advisors. The company stated that it will no longer charge a $1 monthly fee for portfolio accounting on each of its brokerage accounts. Financial advisors who partner with Altruist will now benefit from built-in performance reporting, fee billing, portfolio rebalancing, and portfolio accounting at no extra cost.

According to Marc Greenberg, the Chief Financial Officer of Altruist, software and platform fees can act as obstacles to advisors' growth. As the company continues to grow in scale, it is able to pass on savings to its clients. Greenberg views this fee reduction as part of the company's ongoing evolution and alignment with its mission.

This development comes during a busy year for the Los Angeles-based company. In March, Altruist became self-clearing, allowing it to directly accept money for trades and hold client securities. Additionally, they acquired Shareholders Service Group, a brokerage and custodial platform, in the same month. In April, Altruist secured $112 million in new funding.

Altruist's recent steps demonstrate its commitment to improving services for financial advisors and attracting new business. By eliminating the monthly fee, the company aims to streamline and simplify the account management experience for its clients.

Altruist: Revolutionizing the Custodial Market

Introduction

In 2018, Jason Wenk established Altruist with a mission to capture a significant portion of the custody market. Despite facing stiff competition from industry behemoths such as Charles Schwab, Fidelity, and Bank of New York Mellon's Pershing, Altruist has been steadily making its mark. As a custodial solution, Altruist plays a crucial role for registered investment advisors by safeguarding client assets and offering a wide range of asset management and technological services.

The Power of Altruist

Boasting a platform that serves over 4,000 advisors, Altruist has quickly gained recognition among industry professionals. Although the company remains discreet regarding its total assets, its revenue streams are derived from several sources, including interest income on brokerage assets and its unique model portfolio marketplace for advisors.

Unleashing Superior Technology

While reduced fees may entice advisors to choose Altruist as their custodian, it is the company's cutting-edge software that truly sets it apart. Recognizing the increasing significance of technology for advisors and clients alike, Altruist aims to provide a seamless and elegant experience reminiscent of popular apps like Amazon, Netflix, or Uber. By embracing user-friendly interfaces and intuitive functionalities, Altruist ensures that their users are equipped with the best tools to excel in their advisory roles.

Conclusion

Altruist's relentless pursuit of excellence in the custodial market is revolutionizing the traditional landscape. With its innovative approach and commitment to superior technology, Altruist aims to redefine the way advisors and clients engage with each other. As the industry continues to evolve, Altruist stands at the forefront, ready to shape the future of custodial services.