How is a Registered Investment Advisor different from a stock broker?
One critical difference is that Registered Investment Advisors and their representatives are held to a higher standard of care known as a fiduciary. An Advisor and its representatives must put the client’s interests first. In addition, most Advisor’s are not compensated by commission. Instead they charge a fee based on the assets under management, a flat fee, or an hourly fee for services rendered. This compensation structure better alligns the interests of the client and the Advisor. You can also view the video ‘Brokers vs. Advisors’ at FocusOnFiduciary.com.
