What is the big difference? Anyone know which one would be easier to launch?
You want to start one and you don’t know the difference?
RIA-asset based fee Broker- transaction based fee
Someone I know is torn between the two. I’m wondering the pros and cons.
RIA: your clients have to trust you to give good advice and make good decisions. Broker-dealer: your clients have to trust you to give them a good price. RIA requires more CFA type skills, if you’re into that kind of stuff.
IMO, RIA would be easier to start. Initial start up cost will be much lower with RIA.
RIA - You only have to answer to the SEC. You don’t have to be Series 7 registered. Only 63/65 or 66 in order to have investment clients. It’s fee based as someone mentioned. BD - You answer to both FINRA and the SEC. Your registered reps have to be registered through FINRA. RIA is much much easier to start.
Thanks. This helps. I found this gem as well. http://www.investmentadvisor.com/Issues/2008/September%202008/Pages/BD-or-RIA-How-to-Decide-for-Yourself.aspx