What is the difference between a Broker-Dealer and a Registered Investment Adviser?

Stolper Asset Management’s primary business is that of a Registered Investment Adviser, although our advisors also offer services on a traditional brokerage basis.

Registered Investment Adviser:

  • Adviser has discretion to buy and sell securities on behalf of client.
  • Fee is based on a percentage of assets under management.
  • A Registered Investment Adviser with more than $100 million under management must register with the SEC.
  • Registered Investment Advisors have a fiduciary duty to their clients.

Broker-Dealer:

  • Requires permission from client for each buy and sell decision.
  • Fees are charged on a commission basis per trade.

Managed accounts are charged Advisory Fees in addition to internal fees of investment company products, and should be evaluated when determining the costs of a fee-based account. A list of additional considerations, as well as the fee schedule is available in the firm’s Form ADV (Part 2A) as well as the client agreement. Please ask your Advisor to provide.

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