Trust Company of America believes in giving its clients the freedom to choose and build their business the way they want to. That’s why TCA currently offers clients five different options for executing ETF trades and plans to add four more execution sources in the near future. Neil Buckley, Manager of Equity Trading for Trust Company of America, and Adam Agosti, Head Trader for CMG Capital Group, reviewed the different trading options during a recent Genius Session.
Current execution sources include Convergex, KCG, WallachBeth Capital, Cantor Fitzgerald and Wolverine Execution Services. TCA also recently finalized agreements with SocGen and Jane Street and is close to deals with Goldman Sachs and Deutsche Bank.
The explosion of growth in the ETF trading space has highlighted the need for options and expertise. In fact, according to a survey by the Financial Planning Association’s Journal of Financial Planning and the FPA Research and Practice Institute, advisor use and recommendation of ETFs outpaces all other investment vehicles, with 79% of advisors saying they currently use ETFs—up from just 40% in 2006. Each partner specializes in certain ETF sectors and can offer better prices and deep expertise in the trading environment. TCA does not get paid by the firms it partners with; it offers multiple execution sources solely for the benefit of clients.
TCA’s platform for executing ETF trades is straightforward and intuitive. To choose an execution source, advisors simply click the “special instructions” button in the web interface, then select their desired source from the dropdown menu.
Agosti says he typically picks one partner per day. For larger model trades, he rotates among the different options and notes the quality of service he receives. Both he and Buckley suggest speaking to the trading desks to get a sense of how their system works, as each system is unique and offers different features. High-frequency trading, for instance, is something advisors should ask about.
For more information on TCA’s ETF trade execution sources, contact your relationship manager or call Trust Company of America at 303-705-6000.