The custodian charged a monthly portfolio accounting fee of $1 per brokerage account.
Altruist announced Thursday that it has decided to eliminate the $1 per month portfolio software accounting fee it charged on all brokerage accounts.
The move was made “in line with its mission to make independent financial advice better, more affordable and accessible to everyone,” Altruist, a newcomer to the custodian space, said in a statement.
When advisors keep their assets with Altruist, they now receive integrated performance reporting, fee billing, portfolio rebalancing, a modern client portal and portfolio accounting at no additional cost, he noted.
“For most advisors, portfolio accounting software is the most expensive part of their technology stack,” Altruist said.
Citing Michael Kitces, head of planning strategy at Buckingham Wealth Partners and co-founder of XY Planning Network and AdvicePay, Altruist said advisors spend between $40 and $70 per account each year.
Therefore, switching to Altruist could mean “tens of thousands” of dollars in savings for advisors who join the company, he says.
Meanwhile, for advisors using non-Altruist accounts, “nothing changes,” Altruist said. “They will continue to benefit from their first 100 connected accounts for free and will remain subject to a fee of $1 per account per month thereafter.”
In a blog post, Jason Wenk, CEO of Altruist, said: “We are focused on helping RIAs grow faster, reduce costs, streamline operations and improve the client experience. The broader implications of these findings are clear: when quality financial advice becomes available to a wider audience, more people can make better decisions with their money. This promotes better outcomes and greater financial confidence for individuals, families, businesses and the economy.
Altruist’s decision to eliminate accounting software fees on Altruist brokerage accounts comes as the company launches new portfolio reporting features and enhancements, including holding-level analytics, additional rebalancing insights , enhanced dividend reporting and a liquidity clarity tooltip, he added.
Pictured: Selfless CEO Jason Wenk