Why Sterling Edge Financial Partners With SEI Private Trust

Why Sterling Edge Financial Partners With SEI Private Trust

At Sterling Edge Financial, we are committed to true transparency, client-first service, and strict fiduciary responsibility. Our decision to work with SEI Private Trust over retail brokerages like Fidelity reflects these priorities and is grounded in recent industry practices and clear, up-to-date differences.

SEI vs. Fidelity: Fee Structure, Service, and Data Ethics

1. Transparent Fee Structure—and No Hidden Margins

• SEI Private Trust uses explicit, fully disclosed asset-based fees. Fee schedules are clear, itemized, and part of every client agreement. You always know what you pay and why.

• Fidelity, by contrast, generates much of its revenue from indirect sources: cash sweep spreads, promotion of in-house products, and the strategic routing of trades. Over the past few years, as major brokers shifted to “zero-commission,” hidden margins elsewhere have become a bigger part of the business13.

2. No Product Pushing or Conflicted Sales Practices

• SEI does not reward us for steering clients toward in-house or high-margin products.

• Fidelity, on the other hand, aggressively markets its own funds—many of which contain embedded fees and may not always serve the client’s best interest. Cross-subsidized or “zero-fee” funds are often used strategically to upsell clients or boost engagement with pricier services6.

3. Superior, Fiduciary-Focused Service

• SEI’s model is built for advisors who act as fiduciaries and for institutions that demand specialized support. This includes dedicated service teams and robust compliance controls—not generalized, high-volume call centers15.

4. Your Data: Fidelity Monetizes, SEI Protects

• Fidelity monetizes massive amounts of client behavioral, demographic, and trading data by analyzing trends and using those insights to develop new products and marketing strategies1.

  • Even though Fidelity claims not to "sell" individual data due to regulatory obligations, it leverages your anonymized data internally for business advantage.

  • This kind of data usage increases exposure if a data breach occurs, with recent headline cases reinforcing privacy concerns.

• SEI Private Trust does not sell or broadly monetize client data. SEI’s business model is not built around data extraction, and it uses your information strictly for providing custodial and compliance services, upholding a higher bar for privacy and security5.

How SEI Private Trust Gets Paid—Recent Practices

• Asset-Based Custody & Administration Fees: Transparent, percentage-of-assets fees, adjusted lower for larger portfolios15.

• Management Fees (for SEI-managed funds, if selected): These apply only if you or your advisor choose SEI products, with all expenses documented.

• Technology Platform Fees: SEI earns platform fees for powering secure, customized advisor and client experiences1.

• Cash Program (Sweeps): SEI discloses any compensation received for sweeping client cash to affiliated deposit programs, and competitive rates are documented.

• No Payment for Order Flow: SEI does not generate revenue from directing order flow or “internalization,” common at many retail brokerages13.

Why Sterling Edge Chooses SEI Over Fidelity

• Complete Fee Transparency: No hidden product margins, sales incentives, or forced upsells.

• No Client Data Monetization: SEI does not treat your financial history or behavior as a salable commodity.

• True Fiduciary Service: SEI’s dedicated advisor support and institutional practices align directly with the interests of investors.

• No Cross-Selling Pressure: You are never pushed into proprietary funds or higher-cost solutions for platform profit.

At a Glance: SEI vs. Fidelity (as of 2025)

By choosing SEI, Sterling Edge Financial puts clarity, client safety, and real fiduciary care above all else. You will never be steered toward high-margin or unnecessary products, and your personal information always remains your own.

Want to see our full fee schedules or privacy practices?
Contact your Sterling Edge advisor—your questions are always welcomed, and you’ll always get a straight answer.

1. https://www.groom.com/resources/fidelity-wins-dismissal-from-erisa-claims-based-on-infrastructure-fees/
2. https://www.asppa-net.org/news/2020/7/fidelity-settles-285-million-process-changes/
3. https://www.planadviser.com/fidelity-pay-28-5-million-settle-self-dealing-suit/
4. https://www.cohenmilstein.com/case-study/reynolds-v-fidelity/
5. https://www.asppa-net.org/news/2020/4/court-finds-fault-fiduciary-fee-review/
6. https://www.advisorhub.com/fidelity-pressured-brokers-to-sell-customers-on-costlier-investments-ex-advisor-claims/
7. https://www.omm.com/news/in-the-news/reuters-1st-circuit-upholds-fidelity-win-in-mutual-fund-fees-lawsuit/
8. https://www.mercer.com/insights/law-and-policy/fidelity-wins-dismissal-of-erisa-lawsuit-over-infrastructure-fees/
9. https://www.fidelity.com/tax-information/fidelity-mutual-fund-tax-information
10. https://www.plansponsor.com/use-fidelity-active-management-funds-questioned-court/

Key Sources

1 Kitces.com: Comparing Small RIA Custodians Beyond Schwab And Fidelity, 2024
3 InvestmentNews: RIA Custodian Comparison, 2024
5 SEI Newsroom: SEI’s Collective Investment Trust Business Surpasses $200 Billion, 2022
6 YCharts: Fidelity Fund Structures, 2025