Brokers, Dealers, and Investment Advisers
We usually hear the commonly-used names, when comes to brokerage services and securities dealing services. It seems that this mentioned above are different names for the same job. However, investment adviser in the past was absolutely different kind of job than broker-dealer.
Dealers and brokers job could be shortly described as taking care of customer accounts, while earning a commission on transactions they handled (on behalf of customers).
The other mentioned investment advisers usually focused on advising their clients on investment strategies, investment possibilities and generally what to do with their investment accounts.
Of course, the advisers received a fee for their service.
The situation in the United States has changed, due to new law regulations implemented, a few decades ago. Nowadays, dealers, brokers and advisers can offer the same broad range of services. Right now, potential investor from the United States cannot figure out any differences between dealers-brokers and advisers.
We are not aware, what it looks like in other countries.
However, let us tell you that having in mind the conflicts of interest, if you are looking for an ”real” advisor, please look only for investment advisors that are fees-only firms.
It could be wise to take a look at the long-term portfolio performance. There is tendency that good and reputable investment advisors has a better track record of performance, if they work in the client's best interest.
A ”pure” dealer/broker firm is a registered investment professional company, which buy and sell broad range of investment products, on behalf of their clients and investors.
Good brokerage/investment firm take seriously the financial objectives of their clients, personal investment style, and listen to risk tolerance, when recommending any financial or investment products to client.
Good independent broker/adviser should conduct independent research from its in-house analysts, to ensure that third-party investment products, are offered in the very best interest of their clients.
Some professionals like to get involved in local broker/dealer and investment adviser associations&communities. Such non-profit organisations provide a forums and seminars (sometimes online) for the professional exchange of information among investment advisers, broker dealers.
Best Financial Directory has intention to list below, the quality web-sites that provide information and services concerning investment dealing, brokerage and advice.
Brokers, Dealers, and Advisers Featured Listings
Brokers, Dealers, and Advisers Regular Listings
Wall Street is not only a home for traditional New York Stock Exchange.
There is NYSE Euronext equities marketplaces, with four markets based in the US and Europe offering derivatives, FX, equities, bonds, interest rates, in-dices and swaps.
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