Thank you to Blank Slate for publishing my recent article, “The Difference Between a Stockbroker and an Investment Advisor.” Far too many people don’t understand that there is a big difference between these two roles.
A financial advisor must put their client’s interests first. They are a fiduciary, and have a legal and ethical obligation of primary loyalty to clients.
A broker is not a fiduciary. Their primary loyalty is to themselves and earning commissions. There’s no doubt that some brokers do great work and earn every penny of their commissions, but clients are not their top priority.
The article goes into more detail on the roles, current regulations about broker sand advisors, and more.
If you don’t have time to read it, here’s the critical takeaway:
Know how the person who is handling your investments gets paid, so you know whose interest they are putting first. If it’s your money, you should always come first.