- October 18, 2024
The Benefits of Outsourcing Trading to a Strategic Partner Like IFG
Let’s face it – as financial advisors, we wear “control” like a badge of honor. The idea of outsourcing something as critical as trading? It probably sends a shiver down your spine. There’s this belief that we need to handle every aspect to maintain control or that our value is tied to doing everything in-house.
The reality? That’s a myth that might be holding you back.
Here’s the deal: outsourcing the day-to-day trading doesn’t mean you’re giving up control of your investment management. It means you’re playing smarter. You’re freeing yourself to focus on the high-level decisions that drive your clients’ success—like asset allocation, financial planning, and portfolio strategy—while delegating the repetitive trading tasks that eat up your time.
If that sounds like a smart move, let’s dive into why every advisor should take a serious look at outsourcing their trading activities.
1. More Time to Focus on Strategy
As an advisor, your value isn’t just in placing trades; it’s in the strategic planning and personalized advice you provide to your clients. By outsourcing the operational side of trading, you free up time to focus on higher-level activities that truly move the needle for your clients. You can spend more time analyzing client needs, fine-tuning portfolio strategies, and delivering customized solutions.
63% of investment professionals agree that outsourcing can significantly improve the quality of investment management. (CFA Institute)
Outsourcing allows you to delegate the daily trading tasks, while still remaining fully in control of the investment strategy. You’re not giving up responsibility; you’re just getting more time to refine the plans that will best serve your clients and grow your practice.
2. Reduced Stress and Operational Burden
Trading can be time-consuming and, let’s be honest, a bit of a headache. Monitoring markets, making decisions on when to rebalance, and executing trades in a timely manner all require sharp focus and effort. When you outsource trading, you lighten the operational load, reducing the stress that comes with the day-to-day grind of portfolio management.
This isn’t about passing off the work you don’t want to do; it’s about optimizing your time and energy. You get to focus on what you enjoy and do best, like building client relationships and growing your business, while leaving the nitty-gritty of trading execution to a team of professionals.
3. Access to Advanced Technology and Expertise
Outsourcing your trading often means partnering with teams that have cutting-edge technology and specialized expertise in executing trades efficiently. These trading desks have access to tools and systems designed to streamline the process and reduce potential errors—tools that might be costly or complicated for an individual advisor to maintain.
By leveraging this expertise, you ensure that trades are executed quickly and accurately, without you having to invest in the infrastructure or worry about compliance issues tied to execution. It’s about working smarter, not harder, and delivering consistent results for your clients.
The Bottom Line
Outsourcing trading doesn’t mean relinquishing control over your client portfolios; it means freeing yourself from the operational complexities of trade execution. By outsourcing, you give yourself more time to focus on what truly matters—delivering top-notch strategic advice, growing your business, and building stronger relationships with your clients. You’ll also reduce the stress of daily trading while gaining access to professional expertise and advanced technology that improves efficiency.
Outsource Your Investment Solutions to Integrated Financial Group
At Integrated Financial Group, we understand the leap it takes to hand over a crucial part of your business. But with the right team in place, you’re not losing control—you’re gaining the freedom to do what you do best. Let us take care of the trading, so you can focus on your clients and grow your practice.
