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