Schwab Fidelity: Firms and Fund Technology

schwab fidelity: Of course, there was a business reason, according to The Independent. With larger processing volumes, trading became more efficient and the firms could keep unit costs low and generate profits to fund technology and other strategic investments. Large direct-to-consumer behemoths like TD Ameritrade, Schwab and Fidelity were willing to power channels that essentially competed with them for retail clients. In return, advisory firms got efficient support and access to platforms that included custody, clearing, bundled service options and outsourced technology. It was certainly a win-win, but with a hidden cost. Even the firms that offer an alternative to traditional clearing providers, like mine, have benefited from the arrangement. (news.financializer.com). As reported in the news.