Trade-PMR is elbowing its way into the RIA custody market with cheap software and expensive advertising slots

Small firms can become big firms, with big clients and significant assets. To some extent, the big three custodians (Schwab, TD AMERITRADE, and Fidelity) run the risk of ostracizing the small independent shops by requiring certain asset levels of affiliated advisors.

So Scottrade Advisor Services, Shareholders Service Group, and now Trade-PMR stand the most to gain by taking any advisor onboard and allowing business to grow under their relationship.

The same goes for wealth management firms that require $500k or $1M AUM for new clients. They turn off 30-something entrepreneurs who are sitting on the next killer iPhone app. If the firm doesn’t take them when they’re “little,” why would the client want to do business with the firm after they’ve cashed out a hefty sum?

Bill @ <a href="http://fppad.com">FPPad.com</a>

I used TradePMR as my primary custodian when I started my advisory firm a few years ago. Overall, they are decent and the software is very good. The fact that they were willing to work with a start up was a big plus.

But I have had some revenue limiting issues with them. Several clients have had trouble processing check deposits and ACAT transfers. The back office seems overworked and disorganized at times. And compliance tends to be more aloof than I am accustomed to which seems to breed an “advisor is always wrong” midset.

I still use TradePMR because they are a good value for my smaller and less-active client accounts. I would recommend them for a startup advisor or one who focuses on client acounts under $100,000. More established RIAs and those catering to a more well-heeled clientele would probably do better elsewhere.

Interestingly, we had the same problem as JT with Trade PMR’s back office. Trade PMR was taking unauthorized withdrawals from our clients’ checking accounts, which was scary and quite disturbing to our clients. This went on in the same accounts about a dozen times in 4 weeks, in spite of our daily phone calls and emails.

They were good for the short term for the start up phase of our business, but in hindsight, we wish we had started with TD Ameritrade and avoided the headache of moving all our accounts 3 years later, when we had grown significantly.

I backed into this older article today. Anyone reading this now should know that TradePMR has changed custodians, now using First Clearing. It is ready to introduce a fantastic new platform “Fusion” and continues to invest in advisor friendly upgrades. I think the problems listed above are old and I haven’t talked to any advisors who have had prob’s with TradePMR.

This is not the only custodian that I use, but I have no complaints about its services and I think every advisor should at least talk to them before ruling TradePMR out.

I started out with Trade-PMR but will be moving on from them shortly. I can confirm the back office issues that the other commenters spoke about. It’s very disappointing. They have failed me in areas concerning: communication, trade execution, ACH transfers, as well as other smaller items.
Also, their executive management is abusive and brash. Lastly, they seem to have a high rate of turnover by their employees. I had developed relationships with their employees only to have them move on shortly after. High employee turnover is NEVER a good sign for a company.