Apex Clearing House

Apex Clearing House. Who Uses Apex Clearing? (2023)


Apex Clearing House


Apex Clearing is one of the largest clearing firms in the investment space. Offering a host of services, Apex enables brokers of all kinds to pass those services on to their investors. From crypto, stock, and ETF trading to robo investing to custodial services, and everything in between, Apex Clearing powers some of today’s most talked about brokers.


Who Uses Apex Clearing?


There are several brokers that use Apex Clearing house to facilitate trades. Here are some popular brokers using Apex Clearing house.

  • Ally Invest
  • Firstrade
  • M1 Finance
  • SoFi Invest
  • Sogo Trade
  • Stash Invest
  • Stockpile
  • Tastyworks
  • Twine
  • Webull
  • Public


Services Offered by Apex Clearing


The popularity of Apex among introducing brokers is most likely due to the diverse services that the clearing firm offers. Here are some of the services that brokers look to Apex for.

  • Trade execution
  • Clearing
  • Settlement
  • Back-end office tasks (record keeping and accounting)
  • Diverse range of securities and tradable assets like cryptocurrencies, equities, futures, options, ETFs, and mutual funds
  • Zero-commission approach to investing
  • Fractional share support
  • Stock lending programs
  • Margin account management

Various account types including custodial, retirement, individual, joint, and institutional

Introducing brokers can utilize some or all of the services that Apex provides to create unique investment experiences for their customers. Some examples of brokers who have done this are Stash, Webull, and SoFi.


What is the Role of a Clearing Firm?


In addition to providing complete ‘backend’ solutions for brokers, clearing firms can have several roles. However, they are best known for three primary tasks: clearing, trade settlement, and custody services.

Clearing

Clearing is arguably the most important thing that a clearing firm does. Clearing involves trade oversight, and the clearing house is responsible for facilitating fair trade.

Trade Settlement

Trade settlement is another key component of a clearing house’s responsibilities. It is up to the clearing house to make sure all ‘paperwork’ is handled for trades that run through its system. It is also the clearing firm who makes sure that buyers and sellers of securities fulfill their obligations.

Custody Services

Custody services can be quite complex but include things like providing a variety of investment accounts, handling technical and security needs of brokers, and acting as ‘management’ in many cases. Custody services also include holding and distributing funds as needed between the broker, the investor, and outside institutions.

Ben Wright
About the Author
Ben Wright is an investor, a trader, an educator, and something of an explorer. He spends his days in the markets when he is not teaching or spending time with his family. Ben writes about stockbrokers, markets, investment vehicles, promotional offers, and tools that help investors make the most of their time in the markets.