Things To Consider Before Working With An Independent Broker Dealer

14 August 2019
 Categories: , Blog


As a financial adviser, you likely enjoy helping people make the most out of their financial situations. But if you feel that your current bank or financial institution is holding you back in some way, you might be looking to become independent. But even independent brokers can benefit from some oversight, and that's where an independent broker dealer comes into play. Before selecting your broker dealer for your new career, here are some important things you'll want to research.

How Much of a Hair Cut Are We Talking?

Independent broker dealers help independent brokers by offering things like trade compliance assistance to make sure you and your client stay on the right side of the law. But in exchange for offering you some safety and structure, every dealer will, of course, take a little off the top. Broker dealers are quite competitive with one another, and you might find that the percentage that they charge is competitive across the board. But keep in mind that you will be paying that amount over hundreds or thousands of transactions in the years to come and it can add up to a large amount very quickly. Do the math before you make a final commitment.

Who's in Charge?

When searching for a broker dealer to work with as an independent advisor, it's important to know who you are working for. Mergers and acquisitions happen all the time in the financial world and the parent company that owned the dealer last year might have moved on, but the company kept the same name. Do your research and know who you are actually working for. What is that company's overall reputation in the industry and how confident are you in their practices?

Check Out the Technology

Another service that broker dealers can offer independent advisers is access to technology that will provide real-time updates on the financial markets. Take a look at which financial products you want to offer your clients and then decide if you need more up to date information than what you can find online for free. If you do need updates by the second, you'll want to find a broker dealer that has the advanced platform or tech needed to keep you and your clients up to date. Ask for a demo if necessary or do further research on what is being offered and how it can help you.

Contact an independent broker dealer today to take your financial business to the next level. To learn more, contact a company like Peak Brokerage Services, LLC.