by John Sullivan data compiled by Liana Roberts Europe, regulation, margin squeeze, market volatility, succession planning and oh yes, the day-to-day pressures of running a business. We tick the list off so often, it s getting a bit cliché. But as with last year, we re not much further along in figuring out these issues. Lawsuits related to Medical Capital and other poorly thought-out products spelled trouble for certain brokerdealers last year, and a few shut their doors entirely. The field is a little less crowded, but for those doing it right, the confusion spells opportunity. With all that in mind, which broker-dealers are thriving, which are merely surviving and which are shutting their doors? We present the 202 Broker-Dealer Reference Guide, a review of the top BDs in each major category to help you sort it all out and ensure a lasting and profitable relationship for you and your clients. 74 Investment Advisor June 20 AdvisorOne.com June 20 Investment Advisor 75
When we asked about the issues broker-dealer presidents feel are the most challenging to their business, over half of respondents replied with margin squeeze, more than triple the next answer, which was (once again) keeping technology up to date. It s a perennial problem and one that shows little promise of being solved anytime soon (at least not until boomer retirement is in full swing). by annual revenue 20 20 20 20 avg. BD gross BD total fee-based Concession revenue expenses revenue per rep RANK Company ($ mil.) ($ mil.) ($ mil.) ($ Thous.) LPL Financial LLC $3,340.0 $2,950.0 $,00.0 $206.4 2 Raymond James Financial Services $,80.0 $,060.0 $4.6 $356.5 3 Commonwealth Financial Network $646.5 NA $336.6 $385.0 4 AXA Advisors LLC $573.0 NA $86.0 $3.0 5 MetLife Securities $542.7 NA $58.8 NA 6 Northwestern Mutual $50. NA $95.4 $62.2 7 Securities America Inc. $444.3 NA $85.7 $242.8 8 Cambridge Investment Research Inc. $396.9 $373.8 $22.3 $83.5 9 Royal Alliance Associates $395.8 NA $5.7 $202.6 0 NFP Advisor Service Group (And Affiliates) $369.2 NA $94.4 $274.5 National Planning Corporation (NPC) $335.9 $33.2 $76.2 $98.9 2 Waddell & Reed Inc. $330.7 $35.5 $9.4 $55.7 3 Financial Network Investment Corporation $32.7 $346.8 $.6 $74.7 4 Securian Financial Services $282.5 NA $50.4 $9.9 5 FSC Securities Corporation $263.9 NA $87.6 $220.0 6 Woodbury Financial Services Inc. $253.9 $253.9 $27.9 $65.0 7 New England Securities $253.9 NA $47.8 NA 8 H.D. Vest Financial Services $244.0 NA $80.5 NA 9 First Allied Securities Inc. $24.0 $235.6 $70.7 $297.0 20 SagePoint Financial $235.6 NA $57.8 $33.8 2 Princor Financial Services $229.4 $220.6 $27.5 $93.6 22 INVEST Financial Corporation $27.3 $24.4 $37.6 $72.8 23 Transamerica Financial Advisors Inc. $59.9 NA $30.4 $97. 24 Signator Investors Inc. $58. $54.0 $29. $64.7 25 SII Investments Inc. $5.2 $48.3 $35.9 $225.7 76 Investment Advisor June 20 AdvisorOne.com
As Raymond James Mike Di Girolamo recently told us, most firms saw a slowdown in recruiting at the beginning of 20, but that rebounded tremendously as we moved further into the year. Will that be the case in 202? We re seeing the most interest come from large wirehouse reps and also from employees in regionally based firms, Di Girolamo said. They ve been on the sidelines, but now the pain points are hurting enough for them to make the move. by number of reps reps reps firm's producing added dropped years in RANK Company reps in 20 in 20 business LPL Financial LLC 2,847 NA NA 44 2 Northwestern Mutual 5,776 NA NA 44 3 MetLife Securities 5,98,262,64 29 4 H.D. Vest Financial Services 4,70 400 59 29 5 Transamerica Financial Advisors Inc. 4,700 96 NA 28 6 AXA Advisors LLC 4,372 938 040 2 7 Raymond James Financial Services 3,205 508 508 37 8 Cambridge Investment Research Inc. 2,60 665 340 3 9 New England Securities 2,09 554 540 43 0 Financial Network Investment Corporation 2,00 78 268 29 Princor Financial Services,989 333 400 44 2 Royal Alliance Associates,742 84 3 23 3 Genworth Financial Investment Services,663 NA NA NA 4 Signator Investors Inc.,60 346 44 44 5 SagePoint Financial,567 236 236 42 6 Securities America Inc.,555 NA NA 28 7 PrimeVest Financial Services,500 540 267 27 8 Woodbury Financial Services Inc.,450 63 27 02 9 National Planning Corporation (NPC),442 24 68 4 20 Commonwealth Financial Network,427 08 95 33 2 NFP Advisor Service Group (And Affiliates),329 256 3 5 22 Ameritas Investment Corp.,320 45 89 27 23 Waddell & Reed Inc.,78 605 638 75 24 INVEST Financial Corporation,7 266 40 30 25 Multi-Financial Securities Corporation,00 37 62 32 78 Investment Advisor June 20 AdvisorOne.com
Once again, diversification is the word of the day (decade), not just for the client s portfolio, but for advisor revenue streams. The wirehouse exodus may have some effect in this category this year. Chip Roame told us for this year s IA 25 (see The 202 IA 25, Investment Advisor, May 202) that the overall number of breakaway brokers might not be big, but the assets they take with them certainly are, which have an outsized impact when moved because of the independent channel s smaller size. by highest average production avg. annual aum in gross avg. aum fee-based excess production per advisor programs capital RANK Company per advisor ($ mil.) ($ Bil.) ($ mil.) Commonwealth Financial Network $385,042 $9.9 $23.9 $4.9 2 VSR Financial Services $367,000 $3.8 $3.2 $2.2 3 Raymond James Financial Services $356,535 $44.6 $53.5 $5.8 4 Geneos Wealth Management Inc. $332,006 $35.0 $3.9 $3.0 5 First Allied Securities Inc. $297,000 $4.8 $5.0 $6.8 6 Prospera Financial Services $274,694 $9.0 $0.8 $.7 7 NFP Advisor Service Group (and Affiliates) $274,483 $0.5 $9.7 $23.4 8 securities America Inc. $242,752 $5.5 $3.3 $8.0 9 M Holdings Securities Inc. $235,506 $3.6 $2.3 $.3 0 Founders Financial Securities LLC $232,000 NA $0.4 NA SII Investments Inc. $225,653 NA NA $6.4 2 FSC Securities Corporation $29,988 $0.6 $0.3 $23.0 3 Triad Advisors $25,000 $20.0 $2. $2.2 4 Summit Brokerage Services Inc. $23,000 $27.0 $.3 $6.0 5 Investment Centers of America Inc. $208,02 NA NA $6.4 6 LPL Financial LLC $206,37 $7.9 $0.6 $06.2 7 Royal Alliance Associates $202,605 $4.3 $6.5 NA 8 National Planning Corporation (NPC) $98,878 NA $5.8 $9.8 9 Correll Co. Investment Services Corp. $90,000 $85.0 $0.9 $0.7 20 United Planners Financial Services $90,000 $7.6 $. $5.2 2 Multi-Financial Securities Corporation $89,063 $4.3 $3.5 $5. 22 J.W. Cole Financial Inc. $89,000 $5.0 $.0 $.3 23 Securities Service Network Inc. $85,85 $.2 $3.7 $4.0 24 Cambridge Investment Research Inc. $83,482 NA $22.8 $0.7 25 Financial Network Investment Corporation $80,966 $6.2 $.5 $.4 80 Investment Advisor June 20 AdvisorOne.com
As we mentioned last year, the rise of hybrid advisors those who affiliate with a broker-dealer while simultaneously running their own RIA firm as well continues. The advisor s business will not grow through market appreciation simply because our analysts tell us returns will be lower going forward, Bill Dwyer of LPL Financial, told us last year. That means advisors will have to grow their practices by adding clients. The autonomy that independent advisors experienced in the 980s and 990s, almost ruggedly so, is no longer possible, Dwyer says. It s just too costly. by friendliness to rias average Cfps in years reps with total rep experience RANK Company their own ria force (per advisor) Triad Advisors 84.3% 84.9% 7 2 Securities Service Network Inc. 47.4% 3.6% 6 3 Royal Alliance Associates 44.7% NA NA 4 United Planners Financial Services 30.2% 23.7% NA 5 FSC Securities Corporation 25.3% NA NA 6 American Portfolios Financial Services Inc. 22.0%.0% 8 7 Cambridge Investment Research Inc. 2.3% 27.% 8 8 Securities America Inc. 9.7% 29.0% NA 9 Geneos Wealth Management Inc. 6.7% 33.3% 20 0 First Allied Securities Inc. 4.2% 20.2% 9 Commonwealth Financial Network 3.0% 45.3% NA 2 SagePoint Financial 2.6% NA NA 3 Capital Financial Group/H. Beck Inc. 2.2% 4.7% 0 4 Ausdal Financial Partners.% 9.% 2 5 LPL Financial LLC 9.4% NA 4 6 Crown Capital Securities L.P. 8.2% 22.% 8.2 7 WRP investments Inc. 8.2% 7.5% 52 8 Capital Investment Companies 6.9% 9.5% NA 9 SII Investments Inc. 6.6%.5% NA 20 Independent Financial Group 5.9% 2.% 5 2 Investacorp Inc. 5.9% NA 0 22 M Holdings Securities Inc. 5.7%.7% NA 23 National Planning Corporation (NPC) 5.% NA NA 24 VSR Financial Services 4.9% 30.0% 7 25 NEXT Financial Group Inc. 4.7% 7.5% 5 82 Investment Advisor June 20 AdvisorOne.com
Speaking of home office support, here s something that should give you pause: a bank with an independent channel. The model came from a desire to attract and retain the best financial advisors in the country, John Peluso, president of Wells Fargo Advisors Financial, recently told us. When we started it years ago, we evaluated industry trends and it was obvious to us that the best often didn t want to work in a companyowned shop. They wanted to be able to choose how to affiliate. by home office support ratio of reps to home home office office staff compliance RANK Company staff staff recruiters professionals Century Securities.0 : 50 50 2 Raymond James Financial Services.3 : 2,495 9 03 3 Waddell & Reed Inc..3 : 905 7 25 4 Correll Co. Investment Services Corp..6 : 5 5 First Allied Securities Inc. 2.3 : 270 6 52 6 Commonwealth Financial Network 2.7 : 536 7 46 7 PrimeVest Financial Services 2.8 : 540 6 57 8 Prospera Financial Services 3.5 : 30 2 7 9 Multi-Financial Securities Corporation 3.7 : 300 5 48 0 Investment Centers of America Inc. 3.8 : 83 2 4 VSR Financial Services 3.8 : 74 5 2 Securities America Inc. 4.0 : 385 8 77 3 Berthel Fisher & CO. Financial Services Inc. 4.6 : 72 2 4 Summit Brokerage Services Inc. 4.6 : 75 5 2 5 Cambridge Investment Research Inc. 4.8 : 453 23 46 6 Finance 500 Inc. 4.8 : 5 2 3 7 Sammons Securities Company 4.8 : 97 3 7 8 LPL Financial LLC 5.0 : 2,552 NA 305 9 Financial Network Investment Corporation 5.4 : 390 2 58 20 Signal Securities Inc. 5.5 : 2 2 2 FSC Securities Corporation 5.5 : 98 3 54 22 Geneos Wealth Management Inc. 5.6 : 45 0 23 Broker Dealer Financial Services Corp. 5.6 : 42 2 4 24 Investacorp Inc. 6.2 : 74 4 7 25 Founders Financial Securities LLC 6.3 : 0 4 84 Investment Advisor June 20 AdvisorOne.com
INVESTMENT ADVISOR S directory of independent broker-dealers for more information... American Portfolios Financial Services Inc. (697 reps) 800-889-394 www.americanportfolios.com Commonwealth Financial Network (,427 reps) 866-462-3638 www.commonwealth.com H.D. Vest Financial Services (4,70 reps) 866-28-8206 www.hdvest.com Ameritas Investment Corp. (,320 reps) 800-335-9858 www.aicinvest.com Ausdal Financial Partners (235 reps) 800-722-8732 www.ausdal.com AXA Advisors LLC (4,372 reps) 22-554-234 www.axa-equitable.com Berthel Fisher & Company Financial Services Inc. (329 reps) 800-356-5234 www.berthel.com Broker Dealer Financial Services Corp. (237 reps) 800-352-5634 www.bdfs.com Cadaret, Grant & Co. Inc. (89 reps) 800-288-860 www.cadaretgrant.com Cambridge Investment Research Inc. (2,60 reps) 800-777-6080 www.joincambridge.com Capital Financial Group/H. Beck Inc. (83 reps) 800-333-6884 www.cfginc.com Capital Investment Companies (89 reps) 99-83-2370 www.capital-invest.com Correll Co. Investment Services Corp. (8 reps) 888-205-2247 www.cciscinvestments.com Crown Capital Securities L.P. (330 reps) 800-803-8886 www.crowncapitalsecurities.com Finance 500 Inc. (72 reps) 800-477-6266 www.finance500.com Financial Network Investment Corporation (2,00 reps) 800-879-800 www.financialnetwork.com First Allied Securities Inc. (628 reps) 800-499-5489 www.joinfirstallied.com Founders Financial Securities LLC (63 reps) 888-523-62 www.foundersfinancial.com FSC Securities Corporation (,085 reps) 800-54-2382 www.joinfsc.com GBS Financial Corp. (75 reps) 888-427-0559 www.gbsfinancial.com Geneos Wealth Management Inc. (252 reps) 888-82-5043 www.geneoswealth.com Harbour Investments (94 reps) 888-855-6960 www.harbourinv.com Independent Financial Group (494 reps) 800-269-903 www.ifgsd.com INVEST Financial Corporation (,7 reps) 800-242-4732 www.investfinancial.com Investacorp Inc. (46 reps) 800-804-0000 www.investacorp.com The Investment Center Inc. (305 reps) 800-345-804 www.investmentctr.com Investment Centers of America Inc. (37 reps) 800-732-2363 www.joinica.com Investors Capital Corporation (464 reps) 800-949-422 www.investorscapital.com J.W. Cole Financial Inc. (30 reps) 866-592-653 www.joinjw-cole.com Kovack Securities Inc. (29 reps) 800-7-4078 www.joinksi.com LPL Financial LLC (2,847 reps) 800-877-720 www.joinlpl.com Century Securities (55 reps) 800-488-7994 www.centurysecurities.com Genworth Financial Investment Services (,663 reps) 888-528-2987 www.genworthfinancialsecurities.com M Holdings Securities Inc. (505 reps) 888-520-6784 www.mfin.com 86 Investment Advisor June 20 AdvisorOne.com
INVESTMENT ADVISOR S directory of independent broker-dealers for more information (continued) MetLife Securities (5,98 reps) 800-638-8378 www.metlife.com Questar Capital Corporation (600 reps) 888-446-5872 www.questarcapital.com SII Investments Inc. (59 reps) 800-426-5975 www.siionline.com Multi-Financial Securities Corporation (,00 reps) 800-929-3485 www.multifinancial.com Raymond James Financial Services (3,205 reps) 800-248-8863 www.raymondjames.com Summit Brokerage Services Inc. (345 reps) 800-354-5528 www.joinsummit.com National Planning Corporation (NPC) (,442 reps) 800-88-774 www.joinnpc.com Royal Alliance Associates (,742 reps) 800-82-500 www.royalalliance.com Symetra Investment Services Inc. (325 reps) 800-469-7667 www.sisadvisor.com New England Securities (2,09 reps) 800-388-4000 www.nef.com SagePoint Financial (,567 reps) 866-462-4432 www.sagepointfinancial.com Tower Square Securities Inc. (306 reps) 888-883-4684 www.towersquare.com NEXT Financial Group Inc. (80 reps) 877-876-6398 www.nextfinancial.com Sammons Securities (467 reps) 866-520-6869 www.joinssc.com Transamerica Financial Advisors Inc. (4,700 reps) 800-742-9984 www.tfa.transamerica.com NFP Advisor Service Group (And Affiliates) (,329 reps) 800-880-0080 www.nfp.com Northwestern Mutual (5,776 reps) 800-323-7033 www.northwesternmutual.com The O.N. Equity Sales Co. (746 reps) 877-663-7267 www.onesco.com PrimeVest Financial Services (,500 reps) 800-245-0467 www.primevest.com Princor Financial Services (,989 reps) 888-774-6267 www.princor.com ProEquities Inc. (,000 reps) 800-288-3035 www.proequities.com SCF Securities Inc. (33 reps) 800-955-257 www.scfsecurities.com Securian Financial Services (,093 reps) 800-328-992 www.securiancareers.com Securities America Inc. (,555 reps) 800-747-6 www.joinsai.com Securities Service Network Inc. (424 reps) 866-28-2865 www.joinssn.com Sigma Financial Corporation (622 reps) 888-744-6264 www.sigmafinancial.com Signal Securities Inc. (60 reps) 800-957-4256 www.signalsecurities.com Triad Advisors (484 reps) 800-720-4003 www.triad-advisors.com United Planners Financial Services (334 reps) 800-966-8737 www.joinunitedplanners.com VSR Financial Services (283 reps) 800-800-377 www.joinvsr.com Waddell & Reed Inc. (,78 reps) 93-236-2000 www.joinwaddell.com Woodbury Financial Services Inc. (,450 reps) 800-800-2638 www.woodburyfinancial.com Prospera Financial Services (06 reps) 800-444-4428 www.joinprospera.com Signator Investors Inc. (,60 reps) 800-803-594 www.jhnetwork.com WRP investments Inc. (355 reps) 800-589-2023 www.joinwrp.com 88 Investment Advisor June 20 AdvisorOne.com