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3 min read

Switching Custodial Providers? 5 Key Traits to Evaluate and Ensure Your Expectations Match Reality

Apr 11, 2022 3:50:01 PM

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Finding a new custodial service provider can be tricky. How can you be sure that they’re offering everything your RIA needs? How can you be confident that their technology, service, and resources will support your growing firm?

It comes down to knowing what qualities to evaluate, and what questions to ask.

What to Evaluate.

 When evaluating your next custodial services provider, there are a few key points to focus on before starting a relationship:

  1.  Resources – does the provider offer the technology and service to support your business? Or will you be left high and dry when your RIA needs help?
  2. Team – does the provider’s team focus 100% on serving RIAs like you, or do they split their time serving different types of advisory firms? Does your prospective custodial provider have a retail channel – will the provider’s team be competing with your RIA to attract clients?
  3. Questions – when you have a question, will you know who to contact for an answer? Further, will you get an answer in a timely manner that fully addresses your concerns?
  4. Technology – was the provider’s technology designed with the RIA model front-and-center? Or was it designed to broadly meet the needs of every type of advisor?
  5. Flexibility – does the provider have flexibility in their approach to pricing? Or will you be met with a cookie-cutter pricing rate sheet that may not fit the needs of your business?

 Level-setting on these points and making sure that any prospective provider will offer the service, technology, and support that your RIA needs can save you from making what could be a big mistake.

 Don’t believe us? Hear Brian Bischoff’s story, an RIA that decided to sign on with a big-name custodian, only to find that they couldn’t meet the needs of his growing RIA.

HubSpot Video



Questions to Ask.

In your meetings with prospective providers, they may give you the lip service that they have white-glove support, advanced technology, and an experienced team to fit your needs. But how can you cut through the noise, and see if that’s really the case?

We recommend taking these questions with you to any meetings with prospective providers:

  • Do you have any business channels that are direct to investors and compete with my business?
  • Do you have the resources to support my business? Can you help us get our RIA up and running on this new platform?
  • Do you have dedicated team members who can answer my questions in a timely manner?
  • Can you deliver a white-glove service model at scale? What does your service look like?
  • Does your technology cut corners, or does it offer everything I need to run my business?
  • Is your technology built to fit my unique needs? Do you understand my goals and opportunities as an RIA?

By asking these questions, you can hopefully ensure you’re getting the real answers from any prospective providers, not just hearing what they want you to hear.


Thinking of making a switch? We should talk.

Written by TradePMR