Back to Top

Brokers vs Fiduciaries

I hate it when someone calls me, or AlphaGlider, a broker. Or when they call a broker a financial adviser. But really, it's not their fault. The investment management industry, which is dominated in size, political lobbying, and marketing strength by broker-dealers, has done a great job in obscuring what a broker/broker-dealer is, and what it isn't. In their commercials, one would think that brokers are wholly dedicated to the financial success of their clients. Lift the cover and one finds that the dedication between their clients' interests, and their own, are quite blurred.

However, there is a class of investment advisors that must, by law, put their clients' best interests ahead of their own. They're called Registered Investment Advisers (RIAs), and they have a fiduciary duty to their clients. AlphaGlider is an RIA.

The following video, created by another RIA, does a great job in explaining, in layman's terms, the difference between a broker and a fiduciary.

HighTower is not affiliated with, nor endorses, AlphaGlider.


The views expressed in this commentary are exclusively those of the author, and are not meant as investment advice and are subject to change without notice. The commentary does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive it. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. There is no guarantee that any investment program or account will be profitable or will not incur loss. You should note that security values may fluctuate and that each security's price or value may rise or fall. Past performance is not necessarily a guide to future performance. Individual client accounts may vary.

Copyright © 2016 AlphaGlider LLC. All Rights Reserved.
No part of this report may be reproduced in any manner without the express written permission of AlphaGlider LLC.