If you’ve spent any time looking into the "old school" origins of robo-advising, you’ve likely bumped into the name Kristopher Wallace. Or maybe you were just trying to figure out how SogoTrade suddenly became more than just a place for cheap stock trades.
Honestly, the world of fintech is cluttered with CEOs who talk a big game but don't actually build anything. Wallace is a bit different. He’s one of those guys who jumped ship from a massive, established player—Scottrade—to try and prove that high-end wealth management shouldn't just be for the folks with seven-figure bank accounts.
Who is Kristopher Wallace?
Basically, Kristopher Wallace is the Executive Vice President and a key strategist at SogoTrade. But his "big move" happened back around 2016 and 2017. He teamed up with Jonathan Yao (another former Scottrade heavyweight) to acquire a company called MarketRiders.
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Why does that matter? Because MarketRiders was arguably the first-ever robo-advisor. Long before Betterment or Wealthfront were household names, MarketRiders was out there in 2008 trying to automate the "Modern Portfolio Theory" for regular people.
Wallace saw a gap. SogoTrade was great for active traders who wanted to buy and sell stocks manually. But what about the person who just wanted to grow their retirement fund without staring at candles and charts all day? By bringing MarketRiders under the Sogo Financial Group umbrella, Wallace essentially merged a DIY trading platform with a "set it and forget it" investment engine.
SogoTrade Asset Management (SAM) vs. MarketRiders
It gets a little confusing because you’ll see these names used interchangeably. Let’s clear that up.
MarketRiders is the software and the brand known for its "Do-It-Yourself" service. You pay a subscription fee, and it tells you exactly which ETFs to buy at your own broker.
SogoTrade Asset Management (SAM) is the actual registered investment advisor (RIA). This is the "Managed Service" side of the house. When you use SAM, you aren't doing the trades yourself. Wallace’s team takes the wheel.
They use what they call "Smart-Beta, Low-Volatility" portfolios. It sounds like fancy marketing, but it’s really just a way of saying they try to get you market returns while minimizing the heart-attack-inducing dips.
How the partnership actually works:
- The Custodian: SogoTrade, Inc. (where your money actually sits).
- The Brains: MarketRiders/SAM (the algorithms and advisors).
- The Result: You get a managed portfolio with $0 commissions because everything stays in-house.
The "Get Paid to Trade" Strategy
One of the more unique things Wallace pushed at SogoTrade is the Get Paid to Trade program. It's kinda weird if you're used to just paying fees.
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In a typical trade, a broker might make money off the "spread" or by selling your order flow. SogoTrade decided to share some of that exchange rebate revenue back with the customer on certain limit orders. Wallace has been vocal about this—basically arguing that if the broker gets a rebate for providing liquidity to the market, the customer should get a slice of that pie too.
It’s a bold move. It’s also one of the reasons SogoTrade has stayed relevant while giant firms like Schwab and Fidelity moved to zero-commission models. They had to find a different way to provide value.
What Most People Get Wrong About This Setup
A lot of people think MarketRiders is only for SogoTrade users. That’s not true.
You can still use the MarketRiders DIY tool with almost any brokerage—Vanguard, Fidelity, whoever. The "Wallace-era" acquisition didn't kill the platform's independence; it just gave it a native home at SogoTrade for people who wanted a seamless experience.
Another misconception? That it's "just an algorithm." While it is a robo-advisor, the SogoTrade Asset Management side does have real human oversight. Wallace has spent years in the regulatory and trading trenches (as evidenced by his long FINRA history and various principal registrations), so there is a level of institutional knowledge there that you don't always get with "app-only" startups.
Is it Right for You?
If you’re looking for Kristopher Wallace or SogoTrade Asset Management, you’re likely in one of two camps.
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- The Active Trader: You want the low-cost execution and the "Get Paid to Trade" rebates.
- The Passive Investor: You want the MarketRiders methodology—globally diversified ETFs—without having to manually rebalance your portfolio every quarter.
The real "secret sauce" here isn't some magic stock pick. It's the cost. Wallace’s whole philosophy seems centered on the idea that you can't control the market, but you can control what you pay to participate in it.
Actionable Next Steps
If you're looking to dive into this ecosystem, here is how you actually do it:
- Check the Fees First: MarketRiders DIY costs about $14.95 a month. If your portfolio is small (under $10k), that fee might eat your returns.
- Consider the Managed Route: If you have more than $2,500, the SogoTrade Asset Management (SAM) managed service might be cheaper than the DIY subscription because it's based on a percentage of assets, not a flat monthly fee.
- Use Limit Orders: If you use SogoTrade’s platform, learn how to place "Get Paid to Trade" (GP2T) limit orders. It’s literally free money that most people leave on the table because they just hit the "Market Order" button.
- Look at the ETF Mix: Before signing up, look at the MarketRiders methodology. They focus heavily on low-cost ETFs from providers like Vanguard and iShares. If you're a fan of those, the system will feel very familiar.
Kristopher Wallace and the Sogo team have basically built a "working man's" wealth management tool. It’s not as flashy as some of the Silicon Valley apps, but it’s built on a foundation of Scottrade-style reliability and a very clear focus on keeping costs in the basement.