Whats the difference between a stockbroker and a registered investment advisor?
Investor confusion abounds. The fact is, independent registered investment advisors like Verity Investment Counsel are held to a higher standard than stockbrokers when it comes to putting their clients’ interests first. Unfortunately, most folks aren’t aware of these vital differences. The results of a U.S. Investor Perception Study commissioned by TD Ameritrade in 2006 found that: • 54% of investors believed both stockbrokers and independent registered investment advisors have a responsibility to act in their best interest. Investment advisors DO have a fiduciary duty to act in the best interests of their clients at all times. Brokerage firms, however, are not fiduciaries to their customers and therefore are not required to make decisions that are solely in their customers’ best interests. • 74% of investors were not aware that only Independent Registered Investment Advisors have a fiduciary responsibility. • 79% of investors said they would rather work with an investment advisor if t
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?
