Tag Archives: broker-dealer

How small broker-dealers can fight margin compression and avoid closing their doors

Faced with extreme margin compression, hundreds of broker-dealers closed their doors in 2011. One technology provider can help others avoid that fate.

In the first quarter of 2011 alone, 137 broker-dealers closed their doors (see Are the days of the small Broker-Dealer numbered?), leaving affiliated reps scrambling to find new broker-dealers for their support.

Since the onset of the Great Recession five years ago, broker-dealers as a whole continue to face anemic trading volume, declining ticket charges, and increasing regulatory costs. All these factors combine to put extreme pressure on profit margins, according to Atindra Barua, President and CEO of TrustFort, and technology and back-office service provider to financial companies.

I recently sat down with Mr. Barua and discussed what firms must do to fight margin compression and return to a cycle of growth and expansion. Here is the interview below.

(watch TrustFort President & CEO Atindra Barua speaks about broker-dealer margin compression on YouTube)

[VIDEO] TrustFort targets broker-dealers and large RIAs with its scalable back office solutions

TrustFort, a Woburn, Mass.-based technology provider, is seeking to expand its recognition among broker-dealers and investment advisers.

Founded in 2004, TrustFort has primarily stayed behind the scenes, powering a growing number of broker-dealer technology platforms, including portfolio reporting and client portal functions. Now the company is expanding its relationships and taking on a more public profile.

To learn more about the company and its value proposition, I met with TrustFort’s President & CEO Atindra Barua. I filmed several segments on a variety of topics, the first of which addresses how TrustFort can enhance back office scalability to better serve today’s client in a mobile and social world.

(click here to view on YouTube)