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1. Is their custody fee schedule succinct and easily understood?
As an RIA, you’re bound to operate in the best interest of your clients so it serves to reason that you should understand what custody fees might be passed along to them.
What does "free" really cost?
Are you asking the right questions as you're evaluating your custodian?
What does "free" really cost?
As an RIA, one of the most critical decisions you can make for your business and your clients is choosing a custodian.
There are a number of factors to consider when researching custodians, including the size of your business, the types of services you offer to your clients, the ability to seamlessly integrate with other providers, and, perhaps most importantly, fees.
It’s important to look beneath the surface when vetting potential custodians. That’s because what you may find is that “free” isn’t necessarily free.
| SEI* | Your custodian | |
|---|---|---|
| Custody fee schedule | 1 page | ? |
| Number of additional fees1 | 6 | ? |
| Paper statement fees | No | ? |
| Mutual fund surcharge transaction fees | No | ? |
| Paper confirm charges | No | ? |
| Payment for order flow | No | ? |
| Hypothecation | No | ? |
| Client assets held in client's name—no commingling of investor funds |
Yes | ? |
*Custody provided by SEI Private Trust Company.
Download our guide
Three things that could signal an unsteady custodial relationship.
Three questions you should ask when exploring custodians.
2. Does the custodian participate in payment for order flow or offer "commission-free" trades?
If they participate in payment for order flow practices, the custodian has an inherent conflict of interest in order routing decisions and client trades may not be executed at the best price.
3. Does the custodian compete for my clients?
If a custodian offers services directly to investors, they may be directly competing for your clients and marketing directly to them.
Fees aren’t the only factor to consider when it comes to selecting a custodian.
You and your clients should always know what they’re paying for. For example, technology, service, stability of the organization, and other factors should be part of your decision.
Most importantly, a custodian that creates clarity for you and your clients and has safeguards in place to help protect your clients’ assets can help you serve your clients responsibly, while delivering a better experience.
Join the custodian (r)evolution today.
1 Additional fees include: Special asset service fees, small account fees, wire fees, overnight fees, stop pay fees, account closing fees.
See one-page SEI Wealth Platform Fee Schedule for full detail and description of fees.
Custody services provided by SEI Private Trust Company (SPTC), a federally chartered limited purpose savings association and wholly owned subsidiary of SEI Investments Company (SEI).
Current custody fees may be found in the Custody Agreement. Additional services provided by SEI affiliates and subsidiaries will incur additional fees.