An independent broker is a representative or financial advisor that works for an established brokerage firm, but has an office in a separate location or home office.
Independent Financial Advisor and Broker
These brokers or investment advisors enjoy the freedom to do their business and earn high payouts - without having to start their own FINRA NASD firm from scratch.
This is a very flexible way to work for yourself. Being an independent broker is most appropriate for current producing advisors, with above average commission earnings or other financial professionals like a CPA or a mortgage broker.
Financial Advisor Compensation
Investment advisors normally work on fees covering the totals assets that are managed. This allows the advisor to make recommendations without making compensation on each trade. For the client, they are assured of not getting pushed with transaction ideas that could be perceived as commission based trades.
Advisors are motivated to grow the assets for the customer, which is a benefit for the investor and the independent financial planner.
For people looking to work as independent brokers or stockbrokers, they will work on commissions. An independent stockbroker will be paid by their brokerage firm based on the total commission generated. Since the person is independent, the commission level is much higher than if he was an employee of a brokerage firm.
FINRA is the Financial Industry Regulatory Authority (formerly the NASD). This organization represents broker dealer members - which includes financial advisors, stockbrokers, financial planners and independent brokers.
AIT can help brokers get set up with these firms. To learn more about becoming an independent representative, See Here
Visit the Financial Advisor and Broker Career BLOG - Read and ask questions with experts.
Copyright 2006 American Investment Training, Inc.