What should wealth management firms look for in trading APIs/solutions?
Modern digital trading tools have transformed the wealth and asset management sector, but what features differentiate the good from bad?
To help guide firms, FinTech Global spoke to a couple of experts in the area to identify some of the features to look out for and ones to avoid.
Modern trading tools have empowered advisors with access to real-time market data, AI-powered analytics, enhanced risk management and ultimately improved the decision-making capabilities of users. On the user front, modern tools have also improved access to self-service investing. Intuitive user interfaces and features like one-click trading have helped democratise access to investment management.
Tamara Kostova, founder and CEO of WealthTech100 company Velexa, noted that legacy trading solutions were typically built for single-asset workflows, on-premise deployment and batch-based processes. While perfect for the time, nowadays it falls short of being effective.
Kostova said, “For today’s wealth management firms, this creates operational drag: siloed data, limited visibility across portfolios, poor integration with client reporting, and slower time-to-execution. As wealth managers expand into multi-asset strategies and face rising client expectations for transparency and speed, these outdated systems become a liability.”
Sharing a similar sentiment, Fredrik Davéus, CEO and co-founder of Kidbrooke, explained that legacy trading tools are creating too many barriers for firms. “Legacy trading tools often trap firms in rigid workflows, making it slow and costly to adapt offerings or scale client experiences. They create silos, slow down launches, and limit a firm’s ability to adapt to new client needs. The result is higher operational risk and lower client engagement.”
There has never been greater access to the world of investing. Technology paved the way for WealthTech companies to open the market, providing convenient and easy access to building a portfolio, even if they have limited spare funds. Advisors have also been empowered, having tools to reduce manual workloads and collate data so they can improve their decision-making capabilities, as well as provide greater personalisation to a wider net of clients.
Kostova said, “Modern trading APIs and platforms are changing this landscape by offering cloud-native, interoperable, and highly configurable tools. They allow wealth managers to consolidate execution across asset classes, integrate seamlessly with CRM and risk systems, and deliver real-time portfolio insights to clients. More importantly, APIs empower firms to build differentiated client experiences rather than being constrained by monolithic vendor platforms.”
A report from Fortune Business Insights claimed the global online trading platform market size was valued at $10.15bn in 2024 and could grow at a CAGR of 6.4% to reach $16.7bn by 2032. The booming market shows how important modern, digital trading tools will be and wealth firms that fail to update their technology to meet market demands, could be left in the past.
Upgrading technology is never a simple task. Firms need to decide the best way to adopt new solutions, whether it is replacing legacy infrastructure with more flexible alternatives or finding tools that can work with what is already in place. APIs have become a popular method of quickly accessing new tools. Rather than needing to implement an entire solution, the modular approach of APIs means new services can be adopted quickly. This allows firms to quickly adapt to market needs with new products or services. However, APIs cannot work alone.
Kostova said, “While trading APIs are the “engine” of modern execution, they cannot move without a “vehicle” to house it. Wealth managers must decide whether to source only the engine — working with API-only providers, while building their own client-facing investment applications — or to opt for full-stack vendors, who supply both APIs and white-label front-ends.
“This choice is a critical differentiator: firms with strong in-house development teams may prefer the flexibility of an API-only model, while those prioritising speed-to-market or limited by IT capacity often gain more by leveraging a bundled front-end plus APIs.”
To understand what route a firm will take, they will need to assess the pros and cons of each, as well as look at the solutions available in the market. Each firm will have different internal needs and desired outcomes, which might help guide them a certain route.
When it comes to identifying potential solutions, there are a couple of standout capabilities firms should seek.
Davéus said, “Look for speed, explainability, and integration flexibility. A strong solution should unify data and analytics into one API, reducing complexity while delivering clarity across channels.”
Similarly, Kostova emphasised the importance of interoperability and the ease of integration with existing tech stacks, custodians and market data sources. Scalability to handle higher trading volumes, new asset classes and cross-border complexity is also vital.
Other features include real-time visibility into execution, transaction costs and risk exposure, and built-in controls for regulatory reporting, auditability, and data protection. Finally, the ability to customise workflows to the firm’s investment philosophy and client needs.
On the reverse, there are several red flags to be aware of. Kostova said, “Vendor lock-in with closed architectures or punitive exit costs. It always costs money to onboard with any providers, but the ones with closed ecosystems will be the most difficult to customise.” Others include opaque pricing models, lack of regulatory certifications, weak compliance infrastructure, and poor service models that prioritise sales over ongoing customer support.
Davéus also added a handful of red flags to be mindful of. He said, “Long implementation cycles, opaque models, or rigid vendor lock-in. If the solution limits agility or leaves firms exposed to compliance risk, it’s not fit for purpose.”
Given the importance of data analytics, FinTech Global recently released a list of 10 innovative solutions that are currently available in the market in 2025.
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