Altruist eliminates software fees for RIAs

investmentnews.com:

Altruist has played the latest card in its ongoing efforts to woo independent advisors to its asset custody platform.

The Los Angeles-based company previously charged registered investment advisors $1 per account per month to use its portfolio management software. On Thursday, the firm announced it would waive this fee completely for advisors who custody entirely with Altruist. Advisors who work with other custodians will receive their first 100 accounts for free and be subject to the $1-per-account-per-month fee for the rest of their accounts.

While it may not sound like much, the move could certainly move the needle for firms considering Altruist as a destination for certain client accounts, said Zach Hubbard, director of financial planning and participant engagement at Green Spring Advisors.

“Looking at our offering specifically tailored towards wealth builders (those without assets to qualify for traditional advisor services), every dollar counts toward increasing margins on those clients and expanding our ability to serve more clients in that service tier,” Hubbard said in an email. “We haven’t officially made the switch to Altruist yet, but this definitely furthers their case.”

The move makes independent financial advice better, more affordable and accessible by eliminating what is often the most expensive part of an RIA’s tech stack, said Marc Greenberg, Altruist’s chief financial officer. For advisors spending between $40 and $70 per account every year on portfolio accounting software, the move could save thousands of dollars.

“Software and platform fees can become prohibitive to growth for large and fast-growing firms,” Greenberg said. “We are happy to offer a solution with scalable economics while