Difference between a Registered Investment Advisor and Traditional Retail Firms

Here is a breakdown of the differences of an Registered Investment Advisor, our firm, and a Traditional Retail Firm.


Registered Investment Advisor:

  • Has a Fiduciary duty to client, by law we have to act in the best interest of our client
  • No products to sell
  • Can use any investment available, including low cost passive investments
  • Typically small business owner
  • Access to multiple custodians, where your money is held

Financial Advisor, Traditional Retail Firm:

  • No Fudiciary duty to client, just to find Suitability
  • Has sales contests and quotas to meet
  • Has firm products to sell
  • Typically work for large firms, Merrill Lynch, Smith Barney, Raymond James, Edward Jones
  • Have a revenue sharing agreement with products they sell