Traditional platforms or is there a better way?

By Alistair Kadrian, Business Development Manager, HALO Professional

Never before have clients been more engaged with the investment process. With digital access to investment news and market updates at clients’ fingertips, advisers are finding that they are increasingly working with clients rather than for them — as was the case in yesteryear.

In an era where technology reigns, and investor knowledge is on the rise, are traditional platforms still the best vehicle for modern-day advisers, or is there a better way?

The upside to traditional platforms

If you’ve been advising for a number of years, you’ll be well-versed with traditional investment platforms and what they offer both you as an adviser and your clients. You may even have a preferred platform, but remain curious as to what other options are out there for you and your clients.

Ease of administration and consolidated reporting

If administration is one of your biggest pain points, traditional platforms offer the ability to combine assets under a single administration facility. The consolidated reporting and consistent reporting style is also a major drawcard for traditional platforms. This can not only simplify your tax reporting, but also offer efficiency with meeting preparation.

Choice of investment options

Investment platforms offer a range of investment options and investment managers in one space, creating ease when constructing client portfolios. Some of the more sophisticated platforms now offer specialist funds, or margin lending facilities for more complex clients.

The challenges with traditional investment platforms

The ease and efficiency of consolidated reporting and an umbrella administration approach doesn’t come without cost. The fees associated with traditional investment platforms can add up quickly. Traditional platforms tend to come with clunky transaction abilities, which also lead to high transaction costs.

Additionally, with so many investors becoming more sophisticated and having more say in their investment preferences, portfolios tend to be equities-heavy. Many platforms lack the option to invest in direct international equities and make bulk equities transactions administratively laborious.

Considering a more modern platform approach

If you’re self-licensed or otherwise have preferred investments not offered through mainstream platforms, you may look to construct and manage your own investment portfolio for clients, or utilise more modern, revolutionary platforms for investment.

Particularly for clients with self-managed super funds, they tend to have strong investment preferences (hence opting for a superannuation savings vehicle that provides them with more flexibility and control of their investments). Therefore, it only makes sense to access a platform with better direct equities offering, including direct international exposure.

Actionable, investment intelligence

If an adviser knows that their clients are interested in emerging economies and booming growth in markets around the world, it is worth exploring other options than the traditional platforms. Advisers should explore these possibilities, to ensure they are providing their clients with the approach best suited to their investing goals.

HALO’s global online equities and trading platform provides advisers and clients alike with the ability to access institutional investor-level analysis, access to 35,000 companies across 30 different global exchanges, and 29 ready-made, themed investment portfolios. Our two distinct service offerings mean that an adviser can effortlessly access an array of tools to research domestic and global investment ideas, market analysis and manage their client’s portfolios — all with built-in trade execution capability.

If you’re considering your alternative options to the traditional platforms, consider HALO Professional.  Contact the team on 1300 425 622 or