Direct Indexing Platform Selector

Five platforms dominate direct indexing in 2026: Parametric, Aperio (BlackRock), Schwab Personalized Indexing, Wealthfront, and Frec. They differ significantly on minimums, fees, customization depth, and whether you need an advisor. Answer the five questions below to see which ones fit your situation — and which to skip.

Platform profiles

Frec — lowest-cost self-directed

• Minimum: $50,000 for core index strategies¹
• Fee: 0.09%–0.45% depending on index strategy¹
• Access: Direct-to-consumer; no advisor required or available
• TLH approach: Daily tax-loss harvesting across 16+ index strategies
• Customization: Growing but limited — primarily index-tracking with basic exclusions
• Best for: Cost-sensitive investors who want systematic TLH without paying 0.25–0.40%
• Limitations: No advisor access; limited concentrated-stock overlay; shorter track record than the institutional platforms

Wealthfront — best automated self-directed

• Minimum: $100,000 for US Direct Indexing²
• Fee: 0.25% annual advisory fee — no additional charge for direct indexing²
• Access: Direct-to-consumer; fully automated, no advisor
• TLH approach: Automated daily harvesting in a 100–500 stock portfolio replicating US equity indices
• Customization: Very limited — no meaningful ESG screen capability; no concentrated-stock overlay
• Best for: Hands-off investors who want automated TLH on a $100K–$500K taxable account with no advisor relationship
• Limitations: No advisor coordination; can't customize around a large single-stock position; no factor tilts

Schwab Personalized Indexing — advisor-optional direct indexing

• Minimum: $100,000³
• Fee: 0.40% (tiered down at higher balances)³
• Access: Available direct-to-consumer or via Schwab-affiliated advisors
• TLH approach: Daily harvesting in a ~150-stock portfolio
• Customization: Moderate — sector exclusions, light ESG screens, some individual stock control
• Best for: Existing Schwab clients who want direct indexing without changing custodians; accounts with moderate complexity
• Limitations: Higher fee than Wealthfront/Frec; limited compared to institutional platforms on complex tax situations

Parametric (Morgan Stanley) — institutional TLH and customization

• Minimum: ~$250,000–$500,000 depending on strategy (accessed through advisor)⁴
• Fee: ~0.20%–0.40% platform fee, plus your advisor's separate fee
• Access: Advisor-only; works with most major custodians
• TLH approach: Systematic daily harvesting in 400+ stock portfolios; highest harvest efficiency among large-scale platforms
• Customization: Excellent — factor tilts, sector tilts, individual stock exclusions, concentrated-position overlay strategies; manages $418B+ in customized SMA portfolios⁴
• Best for: Complex tax situations, large concentrated-stock positions, high ordinary income, clients who need advisor coordination with their broader financial plan
• Limitations: Requires advisor; all-in cost higher than consumer platforms; not available for accounts under ~$250K

Aperio by BlackRock — highest-end institutional customization

• Minimum: $1,000,000+ for most strategies⁵
• Fee: ~0.15%–0.35% platform fee, plus your advisor's separate fee
• Access: Advisor-only
• TLH approach: Institutional-grade; multi-account tax-loss harvesting and tax lot coordination
• Customization: Excellent — same capability tier as Parametric; institutional-grade ESG screens, multi-factor tilts, multi-account overlay management
• Best for: Investors with $1M+ in taxable assets who need sophisticated estate planning, complex ESG mandates, or multi-account coordination through an advisor
• Limitations: High minimum; advisor required; overkill for accounts under $1M with straightforward needs

What no platform selector tells you

Platform selection is a second-order question. The first-order question is whether your specific situation — your effective capital gains rate, your ordinary income level, your state of residence, and your existing cost basis — makes direct indexing worth any additional fee. An advisor who specializes in direct indexing will answer that question before recommending a platform. If the net cost-benefit analysis is negative for your situation, the cheapest platform is still the wrong choice.

Use this tool to narrow the field, then run your numbers with a specialist or the Tax Alpha Calculator before making a decision.

Sources

1. Frec pricing and account minimums: frec.com/pricing. Fee range 0.09%–0.45%; minimum $50,000 for core strategies. Verified April 2026.
2. Wealthfront US Direct Indexing minimum and fee: Wealthfront Support — Minimum account sizes for US Direct Indexing. $100,000 minimum; 0.25% annual advisory fee covers direct indexing. Verified April 2026.
3. Schwab Personalized Indexing fees and minimum: Charles Schwab — Direct Indexing. $100,000 minimum; 0.40% starting fee, tiered lower at higher balances. Verified April 2026.
4. Parametric Portfolio Associates — advisor-channeled direct indexing and AUM: parametricportfolio.com. $418B+ in customized SMA portfolios as of mid-2025; advisor-only; minimum varies by strategy (~$250K–$500K). Verified April 2026.
5. BlackRock Aperio direct indexing: BlackRock — Aperio Tax-Managed Equity SMA. Advisor-only; $1M+ minimum for most strategies; institutional-grade customization and tax management. Verified April 2026.

Platform fees, minimums, and features change over time. Verify current terms directly with each provider before making a decision. This page reflects publicly available information as of April 2026 and does not constitute investment or financial advice.