Answers to the questions RIAs and wealth managers ask most about AllocBot.
AllocBot is a portfolio management tool that assists registered investment advisors — it does not provide investment advice, make autonomous trading decisions, or replace the advisor's fiduciary judgment. The advisor reviews and approves all rebalancing proposals before execution.
AllocBot maintains a complete audit trail of every proposal, approval, and trade execution, which supports compliance with SEC Rule 206(4)-7 (compliance policies and procedures) and FINRA supervisory requirements. Many firms use AllocBot's audit exports during regulatory examinations.
AllocBot generates trade proposals based on your model portfolios and drift thresholds. However, every proposal requires advisor review and approval before execution. You can approve trades individually or in bulk, but the system never executes trades without explicit advisor authorization. This keeps the advisor in control and satisfies fiduciary oversight obligations.
Every rebalancing decision is logged with a timestamp, the advisor who approved it, the rationale, and the resulting trades. You can export this audit trail in standard formats for SEC or FINRA examiners. This documentation demonstrates that your firm has systematic investment processes and appropriate supervisory controls.
Yes. Enterprise plans support firm-wide and per-account restricted security lists. AllocBot automatically excludes restricted securities from trade proposals and flags any existing holdings of restricted securities. This supports compliance with personal trading policies, insider trading regulations, and client-specific restrictions.
AllocBot integrates with Charles Schwab, Fidelity Institutional, Pershing (BNY Mellon), and other major RIA custodians. We use read-only data feeds to pull account positions and holdings, and route approved trades through the custodian's standard order management system. Enterprise customers can request integrations with additional custodians.
AllocBot connects through each custodian's standard advisor API or secure data feed. Setup typically takes 15-30 minutes and requires your existing custodian credentials. We use read-only access for position data and a separate, explicitly authorized channel for trade submission. Your custodian's existing security controls remain in place.
Yes. The Advisor plan includes one custodian integration, the Team plan includes two, and Enterprise plans support unlimited custodians. If your firm uses multiple custodians across different account types or client segments, AllocBot manages them all from a single dashboard.
A model portfolio defines target asset class allocations, specific fund or ETF selections, drift thresholds, and rebalancing rules. You assign each client account to a model (or a blend of models). When an account drifts beyond the model's thresholds, AllocBot generates a rebalancing proposal. You can create models from scratch, import them from your existing system, or start with AllocBot's template library.
Yes. You can create client-level overrides on any model — for example, excluding a specific holding due to a concentrated stock position, adjusting a target percentage, or locking a position from trading. The override applies only to that client's account while the underlying model continues to govern the rest of the allocation.
Yes. You can assign multiple models to a single account with percentage-based sleeve allocations. This is useful for clients who need a blend of growth and income strategies, or accounts that combine active and passive approaches. AllocBot rebalances each sleeve independently while respecting the overall account constraints.
When new contributions enter an account or withdrawals need to be funded, AllocBot directs cash to the most underweight asset classes (for contributions) or draws from the most overweight classes (for withdrawals). This allows rebalancing to happen naturally through cash flows without generating unnecessary turnover or tax events.
AllocBot tracks all sales across every account in a household — including IRAs, 401(k)s, and other tax-deferred accounts — to identify potential wash sale triggers. Before proposing any tax-loss harvest trade, AllocBot checks whether a substantially identical security was purchased in any related account within the 30-day wash sale window. If a conflict exists, AllocBot either delays the harvest or suggests an alternative security that avoids the trigger.
No. AllocBot identifies tax-loss harvesting opportunities and provides tax impact estimates, but it is not a substitute for professional tax advice. All tax decisions should be reviewed by a qualified tax professional. AllocBot generates reports that make your tax advisor's job easier, but the final determination of tax strategy remains with the advisor and client.
AllocBot analyzes all available tax lots for each holding and recommends the lot selection method that minimizes tax impact — whether that is specific lot identification, HIFO (highest in, first out), or another method. The advisor can override the lot selection for any trade before approval. Tax lot data is sourced from your custodian's records.
All data is encrypted in transit (TLS 1.3) and at rest (AES-256). AllocBot runs on SOC 2-aligned infrastructure with role-based access controls. We never share client data with third parties. Each firm's data is logically isolated — there is no cross-firm data access. We support SSO/SAML integration on Enterprise plans for centralized authentication.
Yes. You can export all account data, model portfolios, trade history, audit trails, and reports at any time. AllocBot supports CSV and standard industry formats for data portability. Your data belongs to you — we never hold it hostage.
No. AllocBot does not store client SSNs, account passwords, or other personally identifiable information beyond what is necessary for portfolio management (names, account numbers, holdings). Authentication to custodians uses OAuth tokens or API keys, not stored passwords.
Most advisors are up and running within 30 minutes. Connect your custodian, create or import your first model portfolio, assign it to accounts, and your drift dashboard populates automatically. No multi-week implementation or data migration project required.
No migration is required to try AllocBot. You can run AllocBot alongside your current system and compare results before committing. If you decide to switch, we provide tools to import model portfolios and account assignments from common platforms.
All plans include access to our documentation and video walkthroughs. Team and Enterprise plans include live onboarding sessions with our team to configure your models, thresholds, and workflows. Enterprise plans include custom training for your entire advisory team.
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