Independent Broker Dealers Attract Quality Brokers 2018
Independent broker dealers have narrowed the gap between themselves and the wire-houses. They are able to attract more quality brokers from the Big Four.
Reported by Bruce Kelly, January 27, 2018
For years, many wire-house brokers wouldn’t consider moving to an independent broker dealer — and for good reason. The technology at Independent Broker Dealers wasn’t on par with the wires. They had no public branding to bring clients in the door. And perhaps above all else, their recruiting bonuses were measly compared with those offered by wire-houses.
And while the four wire-houses — Morgan Stanley, Merrill Lynch, Wells Fargo Advisors and UBS Wealth Management Americas — still get their fair share of recruits from each other. Independent Broker Dealers have been making considerable inroads in recruiting wire-house brokers, often the most experienced and productive in the industry.
The evidence is striking. The three largest Independent Broker Dealers — LPL Financial, Ameriprise Financial Inc. and Raymond James Financial Inc. — recruited 118 teams from the wire-houses in 2017, a 42% increase over a year earlier, when those same three firms saw 83 such moves, according to InvestmentNews data.