How do Platforms Work?

We all remember the old saying Dont put all your eggs in one basket, well thats why platform where created so that you could have different baskets but without the administration and paperwork nightmare that goes along with it. A platform is a simple method for you to gain access to multiple investment baskets and maintain reporting and access to the accounts, they have, in most cases, allow simplier switches between one basket and another, they also open up more investment choices that where once only available to the wholesale investor or company at the big end of town.

  • IDPS or Wrap Account
  • Commonly used for none superannuation investments and is basically an administration system for the investment, it also allows access to wholesale investments due to the larger number of investors involved. They also generally allow you access to other markets that may not normally be an option for you individually such as Global Direct Equities.

  • Master Trust
  • Very common with superannuation investments and also similar to an IDPS it does however own the investments via a trust structure.

  • SMA or MDA
  • Seperately Managed Accounts (SMA) or Managed Discretionary Accounts (MDA) are basically pooled master trusts and idea for direct share portfolios as they enable you to trade shares between the pools and therefore reduce costs and potential tax liability.

  • CHESS
  • Is the platform system used by the ASX and share brokers to track, monitor, and trade local shares.

We use many platforms and administration services a list can be found here.