Optimizing Your Clearing Agreement: Take a Closer Look 

Your clearing agreement is more than just a legal document—it is the operational backbone of your brokerage firm. Yet, many firms treat it as a one-time negotiation rather than the ongoing strategic asset it truly is. Whether your firm is approaching the end of its current contract or experiencing changes in business direction, reviewing your clearing agreement should be a top priority. 

Why Your Clearing Agreement Deserves Attention 

Your clearing relationship touches nearly every area of your business—from advisor experience to client service, technology, and financial performance. It influences how efficiently you operate, the costs you incur, and the flexibility you have to grow. Despite its significance, many firms let contract terms lapse or remain untouched for years, often missing out on more favorable pricing models, improved service, and updated technology offerings. 

If your contract is more than three years old, or if your firm has recently undergone changes such as advisor recruitment, shifts in product mix, or increased advisory business, it’s time to revisit your agreement. Business evolution often outpaces contract terms, and staying aligned with your clearing partner ensures your platform supports your firm’s strategic goals. 

Evolving Pricing Models and Hidden Costs 

The industry’s move toward advisory-focused business has changed how clearing contracts are structured. Where firms once negotiated around ticket charges and transaction volume, today’s agreements often involve basis point pricing tied to assets under management, cash balances, or mutual fund holdings. Advisory platforms, proprietary programs, and technology solutions all play a role in shaping the economics of your relationship. 

Older agreements may contain outdated, a la carte fees or forgotten amendments that create operational inefficiencies or unnecessary costs. A fresh review can uncover these hidden expenses and open the door to renegotiating a simplified, modern contract that better fits your business today. 

Benchmarking Your Relationship in a Changing Marketplace 

Even if you’re not planning a clearing firm change, exploring the marketplace provides important insights. The landscape has consolidated in recent years, and clearing firms are increasingly offering dual services—both clearing and RIA custody. Understanding what’s available helps you benchmark your current provider’s offering against peers in terms of technology, client support, relationship management, and pricing. 

Evaluating your contract and considering alternatives doesn’t mean you’re preparing for a painful transition. In fact, most firms who engage in this process do not switch clearing firms. But those that do often find a new partner better aligned with their long-term goals—whether that’s cost efficiency, operational support, or platform flexibility. 

Additional Resources 

The Clearing and Custodian Transformation 

Cut to the Chase – Get the Best Clearing Firm Options 

Is Your Clearing Firm Helping You Grow? 

Leveraging Clearing Conversion Experts for Success 

Get The Clearing Contract Expertise You Need 

Navigating a clearing agreement review requires deep industry experience and familiarity with the nuances of pricing structures, advisory integration, and clearing firm capabilities. At Oyster Consulting, our team of operations and regulatory compliance experts has helped hundreds of firms evaluate, renegotiate, or transition their clearing relationships. We bring decades of experience and strong relationships with every major clearing provider. 

By working with Oyster, your team can focus on running and growing the business while we handle the strategic review process. From contract benchmarking and negotiation support to full marketplace evaluations and transition oversight, our experts help you make informed decisions—backed by industry insight, practical experience, and a commitment to your firm’s success.