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3rd Party Portfolio Management Software

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Oct 10, 2008 1:57 am

Financial Planning magazine recently had a nice article discussing technology infrastructure and featured several Advisory firms making significant initial and annual investments in their portfolio management and trading software.  Many of the custodians and clearing firms today offer trading software complimentary (or for little cost) and I would like to hear feedback why an Advisor would purchase outside software when the custodian or clearing firm may provide portfolio management/trading software as part of their offering?  If there are limitations Advisors have found thus forcing them to purchase a 3rd party software, what specifically are the typical limitations based on your experience?

Oct 10, 2008 2:18 am

Are you implying that trading software and Portfolio Management System software are the same things?  

Oct 10, 2008 3:06 am

Morphius, if you have some experiences with either or both types and have some experiences to share, please do so.  As a Senior Member of this forum, I’m sure we could benefit from your thoughts and look forward to reading the responses on this topic.

Oct 10, 2008 3:25 am

OK, Frederick.  I don’t know about the senior member of the forum stuff but my experience is that trading software is not the same as PMS.  You need both.  Most custodians or b/ds have fairly decent trading software, so long as you don’t want to get too far into rules-based rebalancing or elaborate modeling. 

OTOH, I am not aware of anyone giving away a PMS that provides the full functionality most independent’s require.  The two leaders, Advent and PortfolioCenter, are not free (nor are other competitor’s products).

It would be great if someone gave away for free a PMS with similar functionality to those.  That has not been my experience.

Does Trade-PMR gives away Advent or PortfolioCenter for free?