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Oct 9, 2009 2:39 pm

Are you looking for a check? Why not just do RIA or Indy where you can set up your own office and “culture”

Oct 10, 2009 2:14 am

I went from FINET to RJFS. Couldn’t be happier. What a difference. Building a branch now three advisors strong with a fourth joining soon. All vets in the biz like me.

Oct 13, 2009 4:50 am
Squash1:

Are you looking for a check? Why not just do RIA or Indy where you can set up your own office and “culture”



Half my business is transaction so I don't think I am ready for that yet although Finet looks good to me. I can move with no ACATs
Oct 16, 2009 3:38 pm

There are a few important items to consider when looking at a BD. All BDs that have a reputable/quality clearing firm (RJ, Pershing,NFS,LPL, RBC etc.) can execute a trade, provide a fee platform or provide research from a stable of quality providers.   Most BDs just rebrand/private label their clearing platforms and do not create any additional value from a product/platform perspective.  There are small details (no devil) that do not make much of a difference but the BDs and clearing firms will make a big deal of minutia in an attempt to differentiate themselves.  The major things to consider are:

1. Will the BD leave you alone to do business your way and let you create your own culture. 2. Do you need a PHD to calculate your net payout.  When I was a "big wig" at an indy BD we made 5-10% beyond our cut of the reps payout from mark ups on ticket charges, E&O charges, tech fees, marketing dollars from "preferred partners", conferences which the reps paid for, compliance visits, money market and margin revenue sharing, floating payouts etc.  If its too complicated to understand dont go there. You should have a flat payout, set ticket charges (also have a no ticket charge MF platform) and your total monthly charges including E&O should be around $200. 3. Will you get love?  A 300k guy at a big firm is just 1 among 1000s.  If you are a 1mm guy everyone bends over for you.  4. Will compliance be reasonable or are you working for a law firm? 5. Will they be flexible  with specialty needs such as small Private Placement offerings alternatives, etc.  6.  What do they offer beyond the clearing firm? Do they have a specialty?   Bottom line is the BD going to be your boss or partner and will your clients have faith in the clearing firm (They trust you but what about where your assets are held)?
Oct 18, 2009 2:40 pm

I have an offer on the table from RJA, however am considering it given all their hidden bs. admin charges, etc. also, i think their ars settlement or lack thereof has people spooked.

Oct 27, 2009 4:53 am

I deal with quite a few B/D’s and their advisors, the RayJay guys by far seem the happiest and busiest.

Oct 27, 2009 6:32 pm

[quote=cobia]

There are a few important items to consider when looking at a BD. All BDs that have a reputable/quality clearing firm (RJ, Pershing,NFS,LPL, RBC etc.) can execute a trade, provide a fee platform or provide research from a stable of quality providers.   Most BDs just rebrand/private label their clearing platforms and do not create any additional value from a product/platform perspective.  There are small details (no devil) that do not make much of a difference but the BDs and clearing firms will make a big deal of minutia in an attempt to differentiate themselves.  The major things to consider are:

1. Will the BD leave you alone to do business your way and let you create your own culture. 2. Do you need a PHD to calculate your net payout.  When I was a "big wig" at an indy BD we made 5-10% beyond our cut of the reps payout from mark ups on ticket charges, E&O charges, tech fees, marketing dollars from "preferred partners", conferences which the reps paid for, compliance visits, money market and margin revenue sharing, floating payouts etc.  If its too complicated to understand dont go there. You should have a flat payout, set ticket charges (also have a no ticket charge MF platform) and your total monthly charges including E&O should be around $200. 3. Will you get love?  A 300k guy at a big firm is just 1 among 1000s.  If you are a 1mm guy everyone bends over for you.  4. Will compliance be reasonable or are you working for a law firm? 5. Will they be flexible  with specialty needs such as small Private Placement offerings alternatives, etc.  6.  What do they offer beyond the clearing firm? Do they have a specialty?   Bottom line is the BD going to be your boss or partner and will your clients have faith in the clearing firm (They trust you but what about where your assets are held)?[/quote]

I swear I've seen this on the last 50 mailings I've received from multitudes of indy BDs.  And the answer is....?