Few questions regarding Vested and its broking partner Drivewealth

Vested Features & Support
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Vested’s broking partner is Drivewealth. Here are my few questions:

  1. Why did you choose Drivewealth? It is FINRA registered but why such a small broking partner, why not partner with a known big player in the market?
  2. What happens if Drivewealth shuts down considering it is only a small company, no wikipedia page also and has not seen enough market cycles?
  3. Do we get an option to select a different broking partner?
  4. Do you have plans to partner with other big broking companies?
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Great questions!

So one thing to clarify - we ourselves are also a introducing broker with FINRA. License details here - https://brokercheck.finra.org/firm/summary/315194. This adds another layer of regulation to the overall structure.

  • The US markets work a bit differently that in India with two types of brokers - an introducing broker and a clearing broker. Drivewealth is our clearing broker partner today. They actually are quite large in size handling millions of trades daily but they are B2B only that’s why as an investor you may not have heard about them.

  • All shares and cash are held at large custodians (the US follows a custodian model vs. depository model - we did a short video on this here). Even the broker does shut down, assets are held safely. Worst case if assets are also missing, there is a Securities Investor Protection Corporation (SIPC) insurance of $250k for equity and $250k for cash.

  • For now we have only one clearing partner, that could evolve in the future though

Hope this helps!

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