Compare VIA Folio's online service features with those of multi-firm services providers and the traditional check and application process.
|Multi-Firm Alternatives*||Traditional Purchase*|
|Funding||Check, wire, EFT or ACAT transfer||Check, wire or EFT||Check or wire|
|Closing||Automated exchange of shares and cash||Bank escrow and transfer agent||Bank escrow and transfer agent|
|Custody||Online brokerage account (book entry and street name)||Transfer agent||Issuer certificates|
|Brokerage Account Features||Online private & public securities (confirmations, statements, etc.)||Private securities are not held in an account||Private securities are not held in an account|
|Trading & Transfers||In brokerage account||Transfer agent processes transfers||Issuer processes transfers|
(capital, interest, dividends)
|Deposited directly into account||Transfer agent mails check(s)||Issuer mails check(s)|
|Voting & Corporate Actions||In brokerage account||Transfer agent mails proxies and materials||Issuer mails proxies and materials|
|IRAs||In brokerage account||Separate IRA custodian and pricing||Separate IRA custodian and pricing|
|Taxes||Online 1099s||Transfer agent may provide||Issuer may provide|
|Investor Protection||SIPC coverage on account** FDIC insured cash sweep program||No SIPC coverage; FDIC insured bank escrow||No SIPC coverage; FDIC insured bank escrow|
|Offer Website||Hosted by Folio or API||Hosted or API||Not widely available|
|Offer Distribution||Online Folio Investing & RIA customers; B/D syndicate(s)||Online B/D syndicates||Offline B/D syndicates|
* Multi-Firm Alternatives are firms that use a transfer agent and bank escrow to close offers. Traditional Purchase refers to a check, paper application, and escrow closing process that does not involve a transfer agent. Neither Multi-Firm Alternatives or Traditional Purchase use a clearing broker/dealer as of 9/26/2016.
** SIPC coverage on an account is subject to exclusions for certain types of securities.