Wealth Management Trading

07.27.20 | CEO Riskalyze, Aaron Klein and Flyer CEO, Brian Ross

Join Aaron Klein and Brian Ross for an engaging conversation on wealth management trading technology and Riskalyze’s partnership with Flyer.

By Aaron Klein, CEO at Riskalyze & Brian Ross, CEO of Flyer

Hey everyone, thanks for tuning into the Riskalyze blog today. We’re going to try something a little different. It’s not a transcript, and it’s not a question-and-answer, it’s simply two CEOs chatting about how your trading process benefits from the Riskalyze and Flyer integration.

The catch is that you’ll be reading it instead of listening to it. Let’s call it a blogcast.

I’m Aaron Klein, the CEO and founder of Riskalyze, and I’m excited to be joined (via the written word) by Brian Ross, the CEO and founder of Flyer.

Hi, Brian!

Aaron, thanks for chatting about trading technology with me today. At Flyer, we’ve created tools and APIs to automate wealth management trading that save developers time creating trading applications and save advisors time by eliminating manual processes. Now, advisors get trading services quicker and can now focus on providing the best possible service to each and every client they serve.

I’m excited to shine a light today on Connected Trading powered by Flyer which as you know, is the Riskalyze feature built on top of Flyer’s trade management API that powers the thousands of trade orders placed within Riskalyze every day.

That’s right. Riskalyze and Flyer leveled up the advisor wealth management trading experience at the Fearless Investing Summit last fall, and we’re proud of the work advisors are doing with the trading technology in Riskalyze!

Once an advisor has activated Connected Trading inside of Riskalyze, it leverages the powerful Flyer Trading Network to zip trades to custodians behind the scenes and ensure that trades placed via Riskalyze are executed quickly and allocated to client accounts seamlessly.

Here’s what I really love about what we’ve partnered to build together: by connecting Riskalyze to Flyer through our trading API, we made it simple for advisors to manage trading in Riskalyze as simply as they manage their email inbox.

Once an advisor makes a trading decision, the processing of that order happens seamlessly in the background so an advisor never has to manually manipulate or upload a trade file or type in a set of orders in a custodial system.

And what’s really impressive is that you have the data to back up those statements about how you’re taking the heavy burden of trade management off an advisor’s shoulders.

The last time I saw the stats, Flyer had processed over $4 trillion dollars in volume traded for more than 10 million traded accounts. Is that still accurate?

Those are right, and we have seen a significant uptick recently. Advisors are realizing the need to rebalance and trade efficiently in these periods of high market volatility due to COVID-19. With the market swinging wildly, it is imperative that trades get done in accordance with the advisor’s intentions.

We partnered with Flyer because we believe a big part of “risk done right” is “trading done right,” and Flyer prioritizes their trading network in a way that keeps them at the cutting edge.

Exactly. Our goal is to help advisors be more efficient, more fair, and more in control when trading client accounts.

Can you unpack those three benefits for us, Brian?

Sure! Let’s talk about efficiency.

Every advisor understands the frustration of downloading a trade file from a rebalancing system, checking it for errors, uploading it, and then still getting an error message from their custodian because one cell in a spreadsheet is incorrect.

Connected Trading fully eliminates those types of manual workflows, the need to log into multiple systems, and confirming trades and verifying allocations by hand. Advisors can say goodbye to manually typing in trades.

Being more efficient isn’t simply about the idea of saving time and frustration, though. Advisors can see a real reduction in the number of steps they have to take to get from trade action to order execution.

Advisors can take a process that may have seven steps now down to one step with Connected Trading and save 80% of the time they spend on trading to refocus on client or revenue-generating work.

What about that second point? How does Connected Trading make trading more fair?

Advisors, as fiduciaries, need to not only make the best decision for each client but they need to be fair and equitable to each client.

With wealth management trading this can be hard to do if you trade the same security in different accounts at different times, and so different clients get different prices—in other words—different cost basis.

We manage the process by aggregating client orders by symbol, side, and custodian into block orders. Then we send those blocks by custodian and automatically allocate executed shares back into the right accounts in Riskalyze and at the custodian.

Once the advisor clicks the execute button in Riskalyze, Flyer takes care of the rest.

Connected Trading makes it easy to ensure each client gets the exact same price.

That’s such an important point, especially in the era of best interests.

There’s a reason why we call it Connected Trading. Our process connects the advisors quickly and directly to their custodian, so trades get done immediately after the decision is made. This reduces the risk of price changes resulting from delayed trading. Simply put, Connected Trading is the fastest way to execute your investment decisions.

What about that third point of being more in control?

Everyone wants to be in control, right? But it’s hard to be in control if you’re creating trades in the morning and don’t actually get them placed until the afternoon. But that’s a common scenario seen at many advisory firms even today. This ties in directly in the recent market volatility I mentioned earlier.

When advisors trade in real time, they stay in control of their plan. When the market makes major moves, like it has done over the last several months, the ability to take immediate action becomes critical. Waiting for next-day results isn’t a workable solution.

Connected Trading gives advisors real-time visibility into orders, executions, and allocations across all their accounts and custodians, all inside of Riskalyze.

It puts complete control in the advisor’s hands.

Seeing the process end-to-end is nothing short of magical. When an advisor engages clients with the Risk Number and uses sophisticated analytics to make portfolio decisions, they’re off to implementing those decisions in the best way possible.

Riskalyze intelligently monitors accounts and surfaces the right decisions at the right time. With Flyer’s technology behind the Connected Trading engine, you can be sure the execution of those decisions is happening efficiently and fairly.

Brian, thanks for joining me on the Riskalyze blog today.

My pleasure, Aaron! Even though 2020 has brought us some unexpected developments, I’m extremely bullish on the ability of advisors to adapt and continue providing immeasurable value to investors now and in the near future.

Same for me, Brian.

If you’d like to see Connected Trading powered by Flyer in action, come watch a Product Tour and see how trading technology in Riskalyze can improve your business!


If you liked this article, you may also like Using APIs to Improve the Advisor Trading Experience.

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