Fidelity is not ignoring the advisor in its efforts to build a basket trading service. Officials at the Boston Behemoth confirmed to the MutualFundWire.com that the giant is currently working on a version of the service for providers.

The firm rolled out its basket product for retail investors this week (August 7, 2001). That version allows baskets to be created for accounts with as little as $10,000. However, each trade made in the account is charged a separate transaction fee, which may make the service less viable for the smallest accounts. Individual investors do get added analytical features such as the return across the basket. Advanced analytical features such as standard deviations are not provided.

Meanwhile, Fidelity Institutional Brokerage Group (IBG) is working on a version of baskets for advisors for release "sometime in the future", confirmed a Fidelity spokesperson. An advisor product would put Fidelity in the direct path of Foliofn and UNX. Both of those firms are currently targeting advisors.

Charles Schwab appears to be taking a more conservative approach to its PortfolioSource basket platform which it recently tested with retail investors in the Washington DC region. That pilot project has now ended and Schwab officials "continue to evaluate options for product or services through which we can deliver the most effective advice," said a spokesperson.

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