There are many investment management platforms in Australia that you can choose from. While some of these are free, others may require a small administration fee. These fees may be affordable for large investors but could be out of reach for smaller investors. A full portfolio management platform can be expensive and come with ongoing adviser charges. In addition, the FSA has found that there is often little transparency regarding fees and costs. Some platforms fail to disclose any costs associated with the services they provide.
Disruptors will probably have a comprehensive offering and be end-to-end, offering an entire investment solution, rather than asset management only. Despite their broader focus, they are unlikely to be able to out-Vanguard. Vanguard has $15 billion in assets and has partnered with a number of other companies overseas. FCX only manages a fraction of that amount. However, disruptors should focus on providing an end-to-end solution for investors.
The investment management industry in Australia is booming. There are several investment management platforms in Australia, including FCX Australia, and they offer an integrated solution for investors. While they may not offer excellent financial asset management, FCX platforms are unlikely to out-come Vanguard, Australia's largest asset manager. The latter has more than $15 billion under management, including overseas parent companies and partner companies. FCX Australia has only a fraction of that amount, so it is unlikely to become a serious competitor to Vanguard.
The biggest players in this space in Australia is FCX and Xplore Wealth. Netwealth is Australia's 10th largest platform provider, with a 1.9 per cent market share. The two other platform providers are OneVue and HUB24. Netwealth and Xplore Wealth, along with their smaller rivals, view investment management platforms as a minor part of their overall business.
FCX Australia is an Australian financial services company, regulated by Fin clear, and has an office in Surry Hills. They cater to both the novice and experienced trader, and have a great library of educational resources. Their trading platform also has low fees compared to other investment service platforms in Australia. FCX Australia accepts credit/debit cards, PayPal, and Skrill as well as wire transfer. Its withdrawal fees are only $5.
BlackRock Investment Management Australia Limited (BIMAL) is an Australian company and a registered investment manager. They provide advisory services to investors and financial service providers. They are also a provider of unlisted companies. The platform also offers ancillary services, including dividend and distribution payments, AGM services, and corporate actions. The Financial Services Authority recommends segmenting their client base and choosing platforms that suit the needs of their clients.
The industry is changing. Challenger platforms are entering the market. Based on smart modern software, these platforms are gaining market share. However, these companies can't offer everything to everyone on day one, and they need time to develop their functionalities. The platform company Spitfire, which went into administration, has recently been acquired by Powerwrap. While the share price of Praemium lagged the market, it has nearly doubled since the merger.
