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.

Model	1-10 Entrepreneurial Scale	Payout Range	Payout After Expenses & Haircuts	Comments
RIA	10	95-100%	60-80%	For advisors who are mostly excited about managing the money.
Independent	9 to 10	85-95%	60-80%	The best choice for Entrepreneurial minded advisors wanting to keep most of their revenue.
Hybrid	8 to 9	50-85%	40-70%	For advisors who want to straddle the fence between the models.
Boutique	7 to 8	40-70%	40-60%	Some unique opportunities which are hard to find.
Insurance	7 to 8	30-90%	30-70%	Best for those who love insurance.
Regional	6 to 7	30-55%	30-45%	For those who want a little more attention and flexibility than a Wirehouse.
Wirehouse	6 to 7	20-50%	20-40%	For those who need a big name.
Bank	5 to 6	20-50%	20-40%	Best model to grow a book quickly and still keep the industry average payout.
Discount	4 to 5	Salary+ Bonuses	NA	If you can sell, it's the easiest place to make 100k in the first year.

Model

1-10 Entrepreneurial Scale

Payout Range

Payout After Expenses & Haircuts

Comments

RIA

95-100%

60-80%

For advisors who are mostly excited about managing the money.

Independent

9 to 10

85-95%