When you send money to a modern financial platform like Manzil Invest, a common question is: "Where does my money actually go?"
It is important to understand that Manzil Invest acts as the investment manager—the technology and the strategy—but they are not the bank vault. To ensure the safety and security of your assets, Manzil partners with a third-party regulated custodian.
Here is the breakdown of the relationship between Manzil and Alpaca Securities LLC, and what it means for the safety of your funds.
1. Separation of Assets
The most critical rule in modern investing is that an investment advisor should never physically hold a client's money.
- Manzil's Role (The Pilot): Manzil provides the platform, the Halal investment strategy, and the rebalancing algorithms. They direct how the money is invested.
- Alpaca's Role (The Vault): Alpaca Securities LLC is the Broker-Dealer and Custodian. They physically hold the cash and the stocks.
The Key Takeaway: Your assets (money and stocks) are not held by Manzil at any time. They are always with Alpaca. If Manzil were to close its doors tomorrow, your money would remain safe and accessible through Alpaca.
2. Who Is Alpaca Securities LLC?
Alpaca is a prominent U.S.-based brokerage firm that provides the "infrastructure" for many of the world's leading investment apps.
- Regulated Status: Alpaca is a registered Broker-Dealer with the SEC (Securities and Exchange Commission).
- FINRA Member: They are a member of the Financial Industry Regulatory Authority (FINRA), the government-authorized non-profit organization that oversees U.S. broker-dealers.
3. How to Verify
In the financial world, transparency is everything. Because Alpaca is a regulated entity, their entire regulatory history is public record.
You can verify their standing and history using FINRA BrokerCheck, a free tool provided by the regulator.
- Firm Name: Alpaca Securities LLC
- Check Status: https://brokercheck.finra.org/firm/summary/288202
The Bottom Line: When you log into Manzil, you are looking at a user-friendly interface powered by Manzil, but your wealth is sitting securely in the regulated vaults of Alpaca Securities.