Financial market data has become exorbitantly expensive. Prices have risen as much as 20 percent per year over the past several years, and a group of 24 firms recently signed a letter urging the SEC to rein in these price hikes. But new technology has made information easier to access and less expensive to compile than ever before, and wealth managers need to ensure this reality is reflected in the fees their data providers currently charge.

Equities, fixed income and international markets all compile and distribute differing information on varying schedules. Add to these alternative and held-away assets and wealth management firms are forced to funnel too many information streams into their systems to effectively manage. Consolidating and managing these data feeds into an organized, effective data set takes time and opens opportunity for costly errors to be introduced. Instead, wealth managers should consider offerings that provide a comprehensive, single stream of financial data.

Clients today demand more transparency and access to the thinking behind investment decisions. Data can be a powerful tool for managers to justify their recommendations and provide market analysis. But in order to leverage market data in this way, the information managers receive must flow seamlessly into their existing technology applications and any third-party software, including their client portals. When examining data providers, wealth managers should be prepared with specific questions about interfacing with their existing infrastructure.

Every wealth management shop is different, and so are their data and information needs. This is why managers must have the ability to customize the data they receive and how they receive it to best support their workflows. By establishing how and when data flows into their applications, managers can avoid wasting time sifting through unwanted information and can more quickly make decisions and deliver information to clients. Identifying a data solution with customizable options will also ensure it can scale with the business during periods of growth.

Investors now demand access to more asset classes than ever before, and wealth managers must be able to provide recommendations and information on opportunities beyond blue chip stocks trading on the NYSE. Bonds and small-cap equities, plus ETF, mutual fund and alternative data must all be within a wealth manager’s reach. Investors also expect access to international securities, which introduces new price types, exchange rates and different corporate actions that come in on a different time schedule. Conducting an inventory of data needs (now and in the future) is the first step in evaluating or re-evaluating a data solution.

Financial markets move fast. When investment opportunities come and go as quickly as a manager refreshing their web browser, getting data delivered to a firm’s systems daily has become imperative. However, many providers charge huge premiums to deliver data on a daily basis. In doing so, wealth managers are forced to settle for weekly or even monthly data, which can go stale in just a day’s time. More cost-effective data delivery technology has emerged that enables wealth managers to receive daily feeds without a giant price tag.

Complex fee structures have become commonplace in data vendor contracts that can create administrative headaches for wealth management firms. Some contracts come with unclear or restrictive usage clauses and fee schedules that often leave managers with extra unexpected charges on their bills. At their worst, managers struggle to even identify what exactly they’re paying for. These overly complex contracts and fee structures should raise a red flag for managers selecting or evaluating their data partner.