RIA vs. Registered Representative

How We Differ from Registered Representatives

Some think Registered Representatives are similar to RIAs, but:

  • They are usually compensated by commissions on product transactions.
  • Typically not held to a fiduciary standard when making a recommendation, but rather held to a “suitability standard”.
  • Suitability standards say they can recommend certain securities or investments if they believe they are suitable for a particular investor – but they are not required to put your best interest first.

So, which option is right for you?

Some questions you should ask yourself:

  • What am I looking for – assistance with buying/selling individual securities, investment advice, or both?
  • How do I want to pay my financial professional? Fees? Commissions?
  • Do I want to take a longer-term, holistic approach to the management of my investments or make it more transaction oriented?
  • How important is it that my financial professional have a fiduciary responsibility to put my interests first?