Custodians, RIA Platforms Target Fidelity Clients on Heels of $100M Minimum
Fidelity Investments will drop advisors with less than $100M in client assets, prompting competitors like Betterment, Axos, and Schwab to target these advisors. Betterment waived its platform fee until 2028, while Axos and Schwab highlight their support for smaller firms. Fidelity maintains its commitment to larger clients.
How this was made
The 30-second read
Why it matters
The shift creates a competitive opportunity for custodians with no‑minimum thresholds, potentially reshaping the RIA custody landscape.
Market read
The article signals a redistribution of RIA custody assets, benefitting zero‑minimum providers while challenging Fidelity's market share.
What to watch
Potential regulatory scrutiny of aggressive poaching and the impact on Fidelity's own custody revenue.
Background
Fidelity announced a $100M minimum for RIA custodial accounts, prompting competitors to target displaced advisors.
Ticker impact
Charles Schwab is promoting its no‑minimum RIA custody platform to advisors cut off by Fidelity's new policy.
potential modest upside as investors anticipate higher custody volumes
Schwab's large custody base and zero‑minimum offering position it to benefit from Fidelity's policy shift.
Market effects
RIA custody market may see redistribution of assets toward zero‑minimum providers.
U.S. wealth‑management sector could see modest reallocation of advisory assets.
Limited to U.S. brokerage and custodian landscape.
Counterpoint
Fidelity's policy may accelerate consolidation, but advisors could negotiate better terms elsewhere, limiting upside for Axos and Schwab.
Key entities
- companyFidelity Investments
Private wealth‑management firm imposing new $100M minimum.
- companyBetterment
Private fintech offering fee waiver to attract Fidelity‑cut advisors.
- companyAxos Financial
Public bank targeting Fidelity’s displaced advisors.
- companyCharles Schwab
Public broker promoting zero‑minimum custody platform.
