Introduction to Independent Broker Dealers
A lot of people who give you advice on what to buy and what not to buy are the brokers who sit near your place where you live. Now these brokers will generally execute your trades via some broker dealers. These dealers can be big companies which are well known in the industry.
The other part of the industry has the dealers that are independent and are not attached to any big firm. The advantage of these firms is that they are unaffiliated and hence will give you sound advice and as these are not very big the service is very personal. A lot of investment advisers prefer the independence of broker dealers.
Since these are independent firms they need to route trades through some other firms so technology is a must. So select a brokerage firm with good technological capabilities.
Before you register with an independent broker make sure that check with your fellow brokers as to which is a good broker dealer. Some broker dealers companies have been known to arm twist their investment advisers into doing a lot of unethical practices.
You can refer to the independent broker dealer association for background checks about a particular company. As an investment adviser it is in your best interests as well as your clients that you check the broker dealer rankings for the year before making the decision. Each year the reputed trade magazines will come out the broker dealer rankings and these rankings will help make your decision easy.
That said you can go with the affiliated broker dealers too but the fact is that in some ways they may be better with all access to a lot of special information which most of the independent broker dealers may not possess. The choice has to be made by you in the end. - 23218
The other part of the industry has the dealers that are independent and are not attached to any big firm. The advantage of these firms is that they are unaffiliated and hence will give you sound advice and as these are not very big the service is very personal. A lot of investment advisers prefer the independence of broker dealers.
Since these are independent firms they need to route trades through some other firms so technology is a must. So select a brokerage firm with good technological capabilities.
Before you register with an independent broker make sure that check with your fellow brokers as to which is a good broker dealer. Some broker dealers companies have been known to arm twist their investment advisers into doing a lot of unethical practices.
You can refer to the independent broker dealer association for background checks about a particular company. As an investment adviser it is in your best interests as well as your clients that you check the broker dealer rankings for the year before making the decision. Each year the reputed trade magazines will come out the broker dealer rankings and these rankings will help make your decision easy.
That said you can go with the affiliated broker dealers too but the fact is that in some ways they may be better with all access to a lot of special information which most of the independent broker dealers may not possess. The choice has to be made by you in the end. - 23218
posted by X - Men @ 9:33 AM
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