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Broker Dealer upfront money

Setting the reset button on broker dealer upfront money expectations

Much has been written lately about the trends that are taking place in the Independent Broker Dealer space as it relates to upfront money.  In the latest story written by Jodie Papike that appeared in InvestmentNews Aug. 2015, Jodie discusses Independent Broker Dealers upfront money trends and what can be expected when making a move.  The story was written as a way to set the reset button on expectations, as many of the quotes that have appeared lately are not a reality of the current environment.  There are several misconceptions about the transition dollars being offered by independent broker dealers in today’s environment. Fueling the rumor mill are several misinformed quotes about what independent broker dealers are currently offering.”

The size of the broker dealer, an advisors practice- including size, business mix and profitability for the firm are all factored into the amount of upfront money that will be offered.  She also discusses the most important factors to consider when making a transition as those that most affect the long term viability of an advisors practice, such as culture and fit for ones individual practice.

In our experience of transitioning thousands of advisers, we have found the happiest and most satisfied are those who choose a broker dealer based on the balance between culture, fit and needs for their specific practice. While the cost associated with a move and the assistance a potential firm is willing to offer are both important pieces to the puzzle, advisers will be happier long term if they prioritize a variety of other factors as well.”

Without a doubt, a broker dealer’s upfront money can be appealing.  It is also very tempting to place a high level of importance on it while doing due diligence on broker dealers.  That being said, at Cross Search we encourage advisors to look at the entire picture in order to determine, long term, where the best fit will be.

For the entire story in InvestmentNews, please visit-  Investment News Article


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