Choosing your integration model

Part 1: Choosing which assets to trade

Many types of assets are available to trade on DriveWealth. Each has unique attributes of marketability and safety, and each typically has its own requirements to offer in your local region.

  • Equities — stock in companies or other assets
  • Mutual Funds — pooled investments into many types of assets
  • Options — is a derivative that allows the holder the right to purchase or sell securities at a predefined price.
  • Fixed Income — often referred to as a fixed-income security or bond, is a financial instrument that represents a loan made by an investor to a borrower, typically a corporation or government entity.

Part 2: Deciding how to manage customers

DriveWealth offers an Account Management product to handle customer-facing brokerage functions, like tracking how many shares each customer holds and providing them with tax forms. While you can optionally build these services on your own, most partners elect for DriveWealth to handle these functions.

Using the Account Management product is often referred to in the brokerage world as a fully disclosed relationship, because your customers’ details are disclosed to DriveWealth.

With Account Management enabledWithout Account Management
DriveWealth executes and holds all assetsDriveWealth executes and holds all assets
DriveWealth tracks each customer’s owned positions and cashPartner builds a “books and records” database
DriveWealth generates official brokerage documents (statements, trade confirmations/contract notes)Partner generates documents based on its own records
DriveWealth reports and pays certain taxes on behalf of customersPartner handles tax calculation and payments
DriveWealth adjusts for corporate actions (dividends, etc.) to each customerPartner calculates appropriate corporate action for each customer

Part 3: Planning your investment experience

The DriveWealth platform supports many different types of experiences, some designed totally by you, and some designed with the help of some of our add-on products.

Consider for your customers:

  • Self-directed vs. advised — should customers decide what to trade? Or will you manage their money for them?
  • Automated investing — should customers be able to invest automatically? Check out specific solutions DriveWealth provides for this use case.
  • Rewards — should customers be awarded stock for certain activities, like opening an account or using other features in your ecosystem?