What is the difference between a financial planner, an investment adviser and a securities agent (or “broker”)?
Anyone can call themselves a financial planner. If a financial planner or a firm that does financial planning provides specific investment recommendations concerning securities for a fee, they must register as an investment adviser under New Jersey law, or prove that they are exempt from registration. Investment advisers may be paid a flat fee or a percentage of the value of your account, or they may earn a commission on your investment transactions. A securities agent buys and sells securities for a broker/dealer, commonly known as a brokerage firm. Agents earn a commission on the securities transactions that they recommend and execute for your account.
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