Custodian

A custodian is a regulated financial institution that holds and safeguards a client's securities and cash, settles trades, and produces official statements of holdings. In the advisory world, the custodian physically possesses client assets while the advisor directs how they are invested — a separation that protects clients and supports regulatory oversight.

RIAs and independent advisors care about custodians because the choice shapes trading, reporting, and the client experience. Major custodians serving advisors include Charles Schwab, Fidelity, and Pershing, each offering its own advisor platform and data feeds.

Custodians connect directly to advisor software in several ways:

• Data feeds that flow positions and transactions into portfolio reporting
• Trading and rebalancing integrations
• Fee-debiting used by AUM fee billing systems

Because so much of the tech stack depends on these feeds, custodian integration quality is a key filter when comparing wealth management software and reviewing vendors.