If you custody assets with Fidelity, LPL, Raymond James or Pershing, Riskalyze Trading can generate an easy-to-use spreadsheet detailing exactly what trades to execute in which accounts, and for taxable accounts, precisely which tax lots to sell. Tax lot level sells for taxable accounts will generate a .CSV file named “Spreadsheets for Execution” (SFE).
Note: If you are trading with a non-taxable account, Riskalyze Trading will generate a separate .CSV file that can be uploaded to your custodian's order management system.
Let’s dive in to see how a Spreadsheet for Execution file is created and how you can use this alternative file format to execute trades directly at your custodian.
Automated Trade Files vs. Spreadsheet for Execution
Unless otherwise specified, your trade files will export as an Automated Trade File. This file type can be uploaded directly to your custodian’s order management system. These trades are position level and will use the default disposition method that is specified by your custodian (usually FIFO).
When Intelligent Tax Optimization is enabled on an account, any trades processed for that account will export as a Spreadsheet for Execution. Sell orders in this spreadsheet will be tax lot specific, and will override the account's default disposition method.
To enable Intelligent Tax Optimization, navigate to the Trading dashboard, select an account, click Tax Management, and toggle on “Intelligent Tax Optimization.”
To learn more, please visit our Intelligent Tax Optimization (ITO): Getting Started article.
When the “Intelligent Tax Optimization” toggle is enabled for a given account, all trades for that account will be placed into a SFE file.
This is an example of a Spreadsheets for Execution .CSV file.
Executing Tax Lot Level Trades Manually
Trades that are generated in a Spreadsheet for Execution are not compatible with any custodian’s order management system and must be manually entered at the client account level.
To execute tax lot level sells within your custodian’s platform:
- Navigate to the client’s list of open tax lots inside your custodian’s system.
- Select the tax lot with the purchase date listed in the spreadsheet for execution.
- Sell the number of shares specified in the Quantity field of the spreadsheet.
Once you’ve entered all of the individual tax lot level sells, you can enter the buy orders for the taxable account.
Pro Tip: Our Riskalyze Academy Trading learning path gives you all of the inside information you need to become a trading guru.