Independent Brokerage Firm
Successful brokers and advisors basically have their own business regardless of where they work. The client investment business is a self-starter and largely commission based industry, so a broker must rely on his own production for survival anyway. When does the in-office support staff and other benefits of a large office get outweighed by the chance to independent and start your own brokerage firm office for higher payouts?
20 years ago the brokerage business was very different. With no Internet or Intranets to maximize communications, brokers were generally housed in large offices in metropolitan centers and cities. That is where the action was, and it was simply too difficult for a broker or the firm to effectively communicate with each other. Supporting "one person" or "two person" outside offices, in Scottsdale Arizona for instance was tough.
Successful brokers who wanted to start their own office could, but the number of firms that could support them (trading, customer service etc.) was limited then and some firms just wouldn't do it or some weren't able to do it.
Recently, opportunities for Independent Brokerage firms and the producers looking for them have never been better or easier. With everyone connected by computer, and the software available to support the broker and his customers, the start-up steps really are simple now. These opportunities do not just apply to producing brokers and financial advisors, but with other financial people such as:
CPA's
A CPA or accounting firm had many trusted clients and a large number of CPA's have connected themselves to brokerage firms, where they can place trades for clients out of their own office through the firm they have joined (once they are licensed).
Other financial people that benefit from an independent NASD firm relationship also include: Mortgage brokers, Insurance agents, Real Estate brokers and attorneys.
Start your own NASD firm or become an independent of an existing firm?
For 95% of the people looking to start their own office, starting your own NASD firm is NOT the
way to go. To become an NASD firm, you must file a membership to the NASD. This filing process includes a substantial amount of fees and requirements. Not the least is a minimum net capital requirement of $5,000 (for introducing brokers who do not hold customer money). If you plan on clearing and holding your customers money, the net capital climbs up to $250,000. You also have to provide everything yourself. Tickets, confirms, a compliance department etc. This route should only be for groups of producing brokers with large amounts of money under management who wish to establish their own brand name. There really is no other reason.
For everyone else, hook up with an established independent brokerage firm at open up your home office. Payouts can range from 65% up to 95% of gross production. Payout percentages will increase based on the amount of money you are making. You pay your very basics (rent, phone, insurance etc.), but the firm handles all of your trades and processes them. They send the confirms, not you. It allows you to focus on your business and not worry about areas that the firm can take care of for you. Almost all of these firms have ongoing online training and seminars that connects the offices to each other. You can open an office in any state the firm is registered in and live the life you deserve. Our company, American Investment Training (AIT) works with several firms that use us for training and are looking for impressive people to start their own office.
Look forward to your future while spending more time doing what you like to do. Become an Independent Broker, and have your own money management enterprise in your home or your own office.
Good luck!
From brokerjobs.com
About the Author
Nick Hunter is the President of American Investment Training (AIT) www.aitraining.com and the owner of www.brokerjobs.com, a career website for brokers, Independent firms and other broker dealers.
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