DriveWealth was created to allow every investor in the world to benefit from access to investment opportunities—whether they have $10 or $10 million. As we expanded to hundreds of international partners, we kept hearing the same sentiment: “More products to invest in, please!”
Hot on the heels of our Options launch, we’re excited to announce that we’ve added even more offerings: Fixed Income and Global Mutual Funds! Our mission to expand investing access now covers all major asset classes. It’s our same simple API, with way more ways to invest!
One API, a Huge Universe of Assets
As with equities and options, we’ve enhanced our platform to handle execution, clearing, custody, instrument screening, pricing, and more, for all of these new assets. The entire investing experience can be completely controlled by our APIs.
Single account, multiple assets. Once an investing account is opened at DriveWealth, it can hold stocks, options, bonds, and funds, all in one combined place.
Consistent funding flows. Users can fund brokerage accounts via a variety of workflows, then use those funds to buy and sell any asset.
Launch now, expand later. Accounts can be incrementally provisioned for these new features instantly, meaning you can launch a product with a subset of supported asset classes, then add any number of them later.
More on Fixed Income
The term “Fixed Income” represents a broad category of investment instruments which are generally considered to have lower risk than stocks and provide a specified rate of return. As interest rates have risen worldwide, bonds have exploded in popularity among retail investors. With this launch, customers can buy both US treasury securities as well as thousands of USD-denominated corporate bonds.
US Treasuries = Safeguarding of Capital: Backed by the full faith and credit of the United States government, treasury bonds can be a good choice for investors who prioritize the preservation of capital, even in uncertain economic times.
Corporate Bonds = Enhanced Yields: Corporate bonds are issued by companies, and typically offer higher yields than government securities in order to compensate for increased risk. While they come with some credit risk linked to the issuer’s financial health, they can provide an income source for investors looking to balance safety and return.
More on Global Mutual Funds
Global Mutual Funds are the next evolution of our mutual funds offering.
Earlier this year, we added over 30,000 funds for customers based in the US. Now, for the first time, we can support similar products globally with an expansion into offshore mutual funds. This new offering opens access for clients and partners outside the US to thousands of new funds.
What are Global Mutual Funds? These funds are investment vehicles incorporated outside of the United States, offering a wide range of instruments. They allow for access to professional asset management and funds domiciled offshore, providing diversified and potentially tax-advantaged investing choices.
These investors can now access a much broader range of funds, like:
- ESG funds
- Sector-focused funds
- UCITS funds
- Shariah-compliant funds
- International index funds
Both are now rolling out for select partners. To be in the first wave, please reach out to your DriveWealth Account Manager.
Fixed income products and mutual funds carry risks and are not suitable for all investors.
The bond market can be volatile and bond prices are sensitive to factors including but not limited to interest rates, inflation, credit ratings, regulations, and political changes. Bonds carry credit or default risk in that an issuer may fail to make timely interest or principal payments, defaulting on its bonds. Some bonds also carry liquidity risk, as bondholders who choose to sell may not receive a price that reflects the true value of the bonds. The bond market does not have the same pricing transparency as the equity market. DriveWealth may collect commissions, markups, and/or other fees from your fixed income trading activity.
Mutual Fund investors own the shares in the specific fund; they do not actually own the underlying securities in which the funds invest. Mutual funds pricing is based on the Net Asset Value, which is only calculated once per day. Mutual funds have fees and expenses. Funds frequently have their own restrictions and rules, which may be found in a Fund’s prospectus. Restrictions may include but are not restricted to limitations on who may invest (including by country residency, which may affect your ability to invest in a Fund or remain invested in a Fund if you move); frequent trading restrictions governing movement in and out of the Fund; minimum investment requirements for both initial and subsequent purchases; and caps on purchase sizes. Please consult a Fund’s prospectus for any restrictions prior to investing.
Bonds and funds may not be available in all jurisdictions and may be subject to trading restrictions or limitations. Individuals should consult a bond’s offering documentation or a fund’s prospectus prior to investing in a bond or fund. DriveWealth does not provide tax, legal, or investment advice of any kind, and we do not give advice or offer opinions with respect to the nature, potential value, or suitability of any asset class, transaction or investment strategy