Breaking Down Brokerage Firms

The Rummage Group breaks the industry into firms, models and types.  There are about 2,000 broker dealers and over 10,000 RIAs that employ financial advisors.  Making up these firms are about 10 models; wirehouses, regional firms, independents, RIAs, hybrids, insurance companies, boutique firms, chop shops, banks and discount firms. 

This table, based on research by the Rummage Group, uses industry averages and estimates. Keep in mind, there are always exceptions to the rule.

The read more on whether you are at the right firm, model and type, click here.

Model1-10 Entrepreneurial ScalePayout RangePayout After Expenses & HaircutsComments
Bank5 to 620-50%20-40%Best model to grow a book quickly and still keep the industry average payout.
Boutique7 to 840-70%40-60%Some unique opportunities which are hard to find.
Discount4 to 5Salary+ BonusesNAIf you can sell, itŐs the easiest place to make 100k in the first year.
Hybrid8 to 950-85%40-70%For advisors who want to straddle the fence between the models.
Independent9 to 1085-95%60-80%The best choice for Entrepreneurial minded advisors wanting to keep most of their revenue.
Insurance7 to 830-90%30-70%Best for those who love insurance.
RIA1095-100%60-80%For advisors who are mostly excited about managing the money.
Regional6 to 730-55%30-45%For those who want a little more attention and flexibility than a Wirehouse.
Wirehouse6 to 720-50%20-40%For those who need a big name.

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