What is the difference between a stockbroker and a fee-only Registered Investment Advisor (“RIA”)?
There are two significant differences between a stockbroker and a fee-only RIA. Fiduciary Responsibility: Stockbrokers do not have a legal obligation to act in the best interest of their clients. In fact, many brokerage account applications include the following phrase: “Your account is a brokerage account and not an advisory account. Our interests may not always be the same as yours. Please ask us questions to make sure you understand your rights and our obligations to you, including the extent of our obligations to disclose conflicts of interest and to act in your best interest. We are paid both by you and, sometimes, by people who compensate us based on what you buy. Therefore, our profits, and our salesperson’s compensation, may vary by product and over time.” As a Registered Investment Advisor, we have a legal obligation to act in the best interests of our clients. In fact, our Client Agreements include the following phrase: “Solaris has a fiduciary responsibility to act in the be
Related Questions
- What is the difference between utilizing the services of a fee-only registered investment advisor like THOR and a traditional stockbroker?
- What is the difference between a stockbroker and a fee-only Registered Investment Advisor ("RIA")?
- How is a Registered Investment Advisor different from a stockbroker?
