How is The Advisory Firm different from a Stockbroker?
The Advisory Firm, LLC is an independent Registered Investment Advisor. This means that we are held to a higher standard than stockbrokers with it comes to the financial interests of our clients. As an independent Registered Investment Advisor we have a fiduciary duty to our clients, which means that: • We act in the best interest of our clients at all times. Brokerage firms generally are not fiduciaries to their customers and therefore may not make decisions that are solely in their client’s best interest. Brokerage firms are generally held to a suitability standard not a fiduciary standard. • We work strictly on a fee-only compensation arrangement. This means that we are paid an asset-based fee, so our interests are always in alignment with our clients. Brokerage firms have disclaimers stating that their accounts are brokerage and not advisory accounts. They further disclose that their interests may not always be the same as their clients. They may be compensated by both the client a
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