What Is Altruist Financial and How Does It Support RIAs?

Independent financial advisors often struggle to manage client investments efficiently while keeping costs low. Many traditional custodians have complex fees and outdated technology, making it difficult for smaller firms to compete with larger institutions.

Altruist Financial simplifies this process with a modern platform designed for Registered Investment Advisors (RIAs). By streamlining portfolio management and reducing administrative burdens, it helps advisors focus on serving clients.

Services

Altruist provides an all-in-one platform integrating portfolio management, trading, and reporting, eliminating the need for multiple software solutions. This lowers costs and administrative complexity while improving efficiency. Automated rebalancing ensures portfolios maintain target allocations without constant manual adjustments.

Tax-efficient investing is a key feature, including tax-loss harvesting, which allows advisors to offset gains by strategically selling securities at a loss. Fractional share trading enables precise allocations, ensuring portfolios remain fully invested, even for smaller accounts.

Advisors can generate customizable performance reports and access real-time analytics for informed decision-making. A client portal provides transparency into holdings and performance, reducing the need for frequent advisor intervention.

Opening an Account

Setting up an account with Altruist is straightforward. Advisors register their firm and submit compliance documents, such as SEC or state registration details and ADV filings. Once approved, they onboard clients through a fully digital process that automates Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, reducing delays.

Clients complete applications electronically and link external bank accounts for funding via ACH transfers or wire deposits. Electronic signatures eliminate paperwork, speeding up approvals. For advisors managing multiple accounts, bulk onboarding with pre-filled templates and automated workflows simplifies transitions from other custodians. Integration with customer relationship management (CRM) tools keeps client data synchronized.

Custodial Procedures

Altruist serves as a custodian for RIAs, safeguarding client assets while maintaining regulatory compliance. Unlike traditional custodians that rely on legacy systems, Altruist employs a digital-first approach for efficient transaction processing and recordkeeping. Client assets are held separately from the company’s funds, ensuring protection under SEC Rule 15c3-3.

Uninvested cash balances are swept into FDIC-insured partner banks, reducing counterparty risk while maintaining liquidity. The platform also supports dividend reinvestment, allowing assets to compound returns automatically.

Trade settlements follow the T+1 cycle, reducing counterparty risk and improving liquidity management. Corporate actions, such as stock splits or mergers, are processed automatically, with advisors receiving notifications of changes affecting client portfolios.

Fee Structure

Altruist offers a transparent pricing model. Instead of per-trade fees or asset-based pricing, it charges a flat per-account fee. As of 2024, RIAs using Altruist’s proprietary software pay $1 per account per month, with no trading commissions on U.S.-listed equities and ETFs.

This model benefits firms managing many smaller accounts, avoiding percentage-based fees that erode returns. Standard advisory accounts do not incur custodial fees, though services like wire transfers and paper statement requests may have additional charges, which are clearly disclosed.

Support Channels

Altruist provides multiple support options, including live chat, email, and phone support during business hours. Advisors with larger client bases receive dedicated account managers for compliance assistance and platform optimization.

A knowledge base offers step-by-step guides, video tutorials, and FAQs. Regular webinars and training sessions help RIAs maximize platform features.