Broker Dealers
Technically…a broker/dealer is a company that buys and sells investment products on behalf of investors. Generally investors don’t contact the broker/dealer directly. The broker/dealer receives instructions from the financial advisors/registered representatives who are affiliated. The broker/dealer functions as the unseen back office that processes client transactions for Financial Services Professionals.
Broker Dealers...Who Are They?
Technically…a broker/dealer is a company that buys and sells investment products on behalf of investors. Generally investors don’t contact the broker/dealer directly. The broker/dealer receives instructions from the financial advisors/registered representatives who are affiliated. The broker/dealer functions as the unseen back office that processes client transactions for Financial Services Professionals.
Industry Regulatory Authority (FINRA) is the largest non-governmental regulator for all securities firms doing business in the United States. All told, FINRA oversees nearly 5,000 brokerage firms, about 173,000 branch offices and more than 676,000 registered securities representatives. There are 4,594 small firms, or 91.8% of the self-regulatory organization's total broker-dealer membership. Small broker-dealers make up the overwhelming number of firms that are members of FINRA.
What Broker Dealers Are Preferred By Advisors? The Top Ten
Registered Reps a.k.a. Advisors select or move to a Broker/Dealer mainly for one or more of the following reasons:
- Affiliation
- Transition Services
- Compensation
- Technology
- Client services support
- Compensation
- Non-user friendly sales environment created by compliance department.
- The firm failed to enable the rep to carry his/her practice to the next level.
- Technology and support
- Training and support
First Four - Mission Critical
Financial Services Recruiters should take heed! The first four reasons are mission critical. Broker Dealer webites should have sections of their websites titled Affiliation, Transition Services, Compensation and Technology. Advisors that are occupationally disturbed and Advisors wishing to take their practices to the next level can quickly find the information they need to make an informed decision to join the firm.
AFFILIATION: This section tells you how you can affiliate with the broker/dealer e.g. Independent Advisor, Branch Advisor or Employee Advisor. Keep in mind that affiliation vary from firm to firm. So take your time. Get the right information to make an informed decision.
TRANSITION: A very difficult decision for practicing Financial Service Professionals. You just don’t change to a new firm. You must transition. Generally, the broker dealer’s Transition Team will do the thinking for you, tell you what you can expect during transition, and recommend the processes that will work best for you. The Transition team will support you during your first months and help you become familiar and comfortable with policies, procedures, staff, and resources.
Your Transition team will help you:
- Develop a customized transition plan suited to your business focus.
- Ensuring that you and your staff are comfortable with the firm’s forms, policies and procedures.
- Complete licensing materials, including the U4
- Get approval of business cards, letterhead and other marketing related materials
- Provide transition assistance to offset downtime during the conversion period
Your transition team members include staff and coaches from
- Asset Management
- Cashiering
- Commissions and Compensation
- Compliance
- Customer Service Center
- Licensing
- New Accounts
- Recruiting (e.g. Marketing Assistants)
- Retirement Accounts
- Trading
- Transfer of Assets
COMPENSATION: Competitive broker/dealers provide advisors the highest payout possible without compromising the firm’s commitment to service. Larger producers can earn up to 90% on their personal securities commissions. Generally firms will have minimum production requirements tied to high payouts. For example:
- $250,000 annual GDC to be a stand alone producing representative
- $100,000 annual GDC to join under an existing Branch Office
Also independent Broker/Dealers tend to require at least 5 years industry experience with Series 7 and Series 65/66 registrations that enable them to do fee-based business as Registered Investment Advisor –RIA. To be sure, most firms will consider candidates that must undertake the required state and federal exams. Given the choice…they will hire the experienced hand.
TECHNOLOGY: Financial Services Professionals may select or leave a firm because of its technology. Advisors look for technology that make them efficient. When we talk of efficiency think of a fully integrated robust platform of financial products, technical services and the tools to help the advisor grow and maintain his/her financial practice. This intergrated platform also includes a Insurance Services platform to automate processing and support the administrative handling of wrap-like non-insurance retirement and other benefit programs. These tailored retirement products will grow as the baby boomer generation continues to enter retirement. Smart systems will works in concert by providing an automated, centralized system that electronically links insurance carriers with broker/dealers and banks for the exchange of information and money settlement during the sale of variable and fixed-rate annuities as well as protection products (Life Insurance).
Below are links to selected Broker/Dealer websites. (This list is not inclusive) Get More Details.
Broker Dealers Gateway
Advantage Capital Corp - 800-235-2237
www.joinacc.com
AIG Financial Advisors 800-GOAIGFA
www.aigfa.com
American General Securities Inc 800-247-4669
www.agsecurities.com
Ameritas Investment Corp (800) 335-9858
www.aicinvest.com
Associated Securities Corp 310-670-0800
www.afgweb.com
Berthel Fisher & Company 800-356-5234
www.berthel.com
Brecek & Young Advisors Inc 888-777-1992
www.brecek.com
BCG Securities Inc. (888) 394-2247
www.bcgsecurities.com
Cadaret, Grant & Co Inc 800.288.8601
www.cadaretgrant.com
Cambridge Investment Research Inc 800-777-6080
www.joincir.com
Capital Analysts Inc 888-404-1177
www.capitalanalysts.com
Crown Capital Securities LP (800) 803-8886
www.crowncapitalsecurities.com
Centaurus Financial Orange 800-880-4234
www.centaurusfinancial.com
Commonwealth Financial Network 866-462-3638
www.commonwealth.com
Delta Equity Services Corp. (800) 649-3883
www.deltaequity.com
Ensemble Financial Services 585-419-1010
www.ensemblefs.com
ePLANNING Securities, Inc. (888) 815-1000
www.eplanning.com
Equity Services, Inc. (800) 344-7437
www.equity-services.com
Financial Network Investment Corp 800-879-8100
www.financialnetwork.com
First Midwest Securities Inc 800-662-8452
www.firstmidwestsecurities.com
First Financial Planners Inc 636-537-1040
www.ffp1.com
FSC Securities Corp 800-547-2382
www.fscorp.com
Geneos Wealth Management 303-785-8470
www.geneoswealth.com
Gunnallen Financial Inc 800-713-4046
www.gunnallen.com
GBS Financial Corp. (707) 568-2400
www.gbsfinancial.com
Harbour Investments 888-855-6960
www.harbourinv.com
H.D. Vest Financial Services 800-821-8254
www.hdvest.com
ING Financial Partners Inc 800-356-2906
www.ingfinancialpartners.com
InterSecurities Inc. 800-322-7161
www.intersecurities.com
Investacorp Inc 800-804-0000
www.investacorp.com
Invest Financial Corp 800-245-4732
www.investfinancial.com
Investment Center, Inc 800-345-8041
www.investmentctr.com
Investment Centers Of America Inc 800-544-7113
www.joinica.com
Investors Capital Corp 800-949-1422
www.joinicc.com
Kalos Capital Inc 678-356-1100
www.kaloscapital.com
Kovack Securities Inc 866-Join KS
www.joinksi.com
Multi-Financial Securities Corp 800-929-3485
www.multifin.com
National Planning Corporation 800-881-7174
www.natplan.com
Pacific West Securities, Inc 888-236-7979
www.pwfinancial.com
PlanMember Securities Corp 800-874-6910
www.joinplanmember.com
Primevest Financial Services, Inc 800-245-0467
www.primevest.com
NFP Securities Inc 512-697-6000
www.nfp.com
Princor Financial Services 888-774-6267
www.princor.com
Raymond James Financial Services Inc 800-998-7537
www.advisorchoice.com
Royal Alliance Associates Inc 800-821-5100
www.royalalliance.com
Sammons Securities Co. 800-373-1612
www.sammonssecurities.com
Securian Financial Services, Inc 888-237-1838
www.securianfinancial.com
Securities America Inc 800-989-8441
www.securitiesamerica.com
SII Investments Inc 800-426-5975
www.siionline.com
Sterne Agee Financial Services Inc 877-717-8625
www.discoversal.com
Transamerica Financial Advisors Inc 800-742-9984
www.transamerica.com
Triad Advisors Inc 800-720-4003
www.triad-advisors.com
United Planners’ Financial Services Of America 480-991-0225
www.unitedplanners.com
US Allianz Securities 888-446-5872
www.usallianzsecurities.com
Woodbury Financial Services Inc 800-800-2000
www.woodburyfinancial.com