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You are here: Home / Exclude / Broker vs Investment Advisor: Which Benefits Your Investment Portfolio
Broker vs Investment Advisor: Which Benefits Your Investment Portfolio

Broker vs Investment Advisor: Which Benefits Your Investment Portfolio

February 11, 2022 By Cade's Team Leave a Comment

According to industrial studies, working with a professional broker or advisor has the potential to add 1.5% to 4% to your portfolio returns. However, the actual figure will depend on your financial literacy the degree of knowledge they can contribute above and beyond your own. If they are able to introduce you to new assets types with which you’re not familiar, you might reap greater gains.

Today, there are numerous investment options, ranging from stocks and bonds to real estate investment and cryptocurrencies. It can be challenging to know where to start or which option is best for you. Additionally, choosing between a broker and an investment advisor can be confusing.

So, broker vs investment advisor, who is the right professional to help you manage your investment portfolio? And what’s the difference between the two? Read on to understand the differences and determine how to choose the best option for your investment portfolio:

Who Is an Investment Broker?

An investment broker is a professional who helps investors buy and sell securities. A security is just a fancy term for a financial instrument, most often a stock, bond, or option.

Investment brokers can be either full-service or discount brokers.

Full-service investment brokers offer a wide range of services, including investment advice, retirement planning, and tax preparation. Discount investment brokers provide only basic services, such as executing trades.

Investment brokers are licensed by the Financial Industry Regulatory Authority (FINRA). Investment brokers must pass the Series 63 or 65 exams to become licensed.

Who Is an Investment Advisor?

An investment advisor is a professional who provides investment advice to clients. Investment advisors are typically registered with the Securities and Exchange Commission (SEC) as Registered Investment Advisors (RIAs).

To become an investment advisor, one must pass the Series 65 or 66 exams. Investment advisors must also adhere to a fiduciary standard, which means they must act in their clients’ best interests.

Advisors also charge a fee for their services. This can be either an hourly rate or a percentage of assets under management.

Before hiring an investment advisor, be sure to ask about their fees and why they choose that structure.

Responsibilities of an Investment Advisor

If you want to work with an insurance advisor, make sure to understand the scope of their responsibilities versus your own. This will help you know what to expect from the advisor and what they should be doing for you.

An investment advisor’s primary responsibility is to provide investment advice to clients. This includes making recommendations about what securities to buy and sell and when to buy and sell them.

Investment advisors also provide guidance on asset allocation and portfolio management. They may also provide other services, such as tax preparation and estate planning.

When choosing an investment advisor, it’s important to find someone who aligns with your investment philosophy. You should also consider an advisor’s experience, credentials, and fees.

Broker Vs Investment Advisor: What’s the Difference?

So, what’s the difference between an investment broker and an investment advisor? Below are key differences between the two:

Difference in Regulations

Investment brokers are licensed by FINRA and typically earn commission on their trades. On the other hand, investment advisors are registered with the SEC as RIAs and must adhere to a fiduciary standard.

This means advisors are healed to a higher standard than brokers and must always act in their clients’ best interests.

Fee Structure

Investment brokers typically earn a commission on each trade. The commission may be a percentage of the trade value or a flat fee. On the other hand, advisors typically charge an annual fee based on a percentage of assets.

The fee may either be a percentage commission or a flat rate based on the services you need. When charging a fee, it’s usually a percentage of assets under management (AUM).

Differences in Testing and Licensing

Investment Advisors are held to a higher standard when it comes to testing and licensing.

They must pass the Series 65 exam before even starting working with clients. This exam tests for competency in investment management and securities analysis.

On the other hand, Brokers are only required to pass the Series 63 or Series 66 exams. These exams test for knowledge of state securities laws and regulations but not necessarily for investment expertise.

So if you’re looking for someone to help you manage your investment portfolio, an Investment Advisor is typically the better choice, because they are more heavily regulated and have to prove their competency before they can work with clients.

Is a Broker vs Investment Advisor better?

Do You Need an Advisor or a Broker?

Between an investment broker or an investment advisor, who would benefit your portfolio more? The answer to this question depends on your individual investment goals and objectives.

If you’re looking for someone to provide comprehensive financial planning services, an investment advisor may be better. However, if you’re looking for someone to execute trades, an investment broker may be a better option.

For example, if you’re looking to grow your real estate investment portfolio, an investment advisor can help you develop a strategy and select the appropriate investments. However, if you’re looking for someone to handle the day-to-day management of your portfolio, an investment broker may be a better option.

If you’re looking to place part of your investment funds into real estate, specifically, then check out this site to find the skilled investment advisors for real estate.

How to Choose the Best Investment Advisor or Broker for You

Investment advisors and brokers have different responsibilities and tasks. Both professionals work in the securities industry to help you grow your investment portfolio. However, they have different levels of experience and expertise.

Here are a few things to consider when choosing an investment advisor or broker:

  • Their experience and expertise
  • The fees they charge
  • The services they offer
  • Your investment goals and objectives

It’s important to choose an investment advisor or broker that meets your specific needs. Be sure to do your research and ask plenty of questions before making a decision. The right advisor or broker will help you reach your long and short-term financial goals.

Hiring the Best Professional for Your Investment Goals

Now that you know the difference between a broker vs investment advisor, it’s time to choose the best professional for your needs. Consider your investment goals and objectives, and then compare the experience and fees for each type of professional.

Whether you’re looking to invest in stocks, real estate, or other opportunities, the right broker or advisor can help you reach your financial goals.

For more tips on how to create and grown an investment portfolio, explore the Finance Section of this site.

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Filed Under: Exclude, Investing

About Cade's Team

Cade Hildreth is an LGBTQ+ entrepreneur, real estate investor, and former USA Rugby Player. Cade has founded 7-figure businesses, scaled websites to millions of views, acquired a portfolio of income-producing residential and commercial real estate assets, and played rugby worldwide.

As a world-class athlete, Cade has represented the USA Rugby Team, trained extensively at the Olympic Training Center, and played with elite squads from across New Zealand and Australia.

Often compared to Tim Ferriss and Ramit Sethi, Cade teaches millions to expand financially, while living an authentic and adventurous life.

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“As an LGBTQ+ entrepreneur, real estate investor, former USA Rugby Player, and fitness fanatic, I’ll teach you what your parents and teachers should’ve taught you, but didn’t know themselves.” -Cade Hildreth

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Because it’s the New Year, let’s talk about ch Because it’s the New Year, let’s talk about change...

For a long time, I’ve thought about top surgery. I remember when I was 6 or 7 years old when I wanted to run around outside on a hot, sunny day with my shirt off…and I first saw my parents… hesitate. Ughh. 

It wasn’t their fault but I still remember that heart wrenching feeling. To their credit, they ultimately said, “Ok, go do it!” While I did “do it”, I remember the feeling of shame that crept in.

Over the years, being in affirming sporting/rugby circles helped suppress the urge to get top surgery, but it never quite “stayed down.”

So last summer I got keyhole #topsurgery. I’ll talk about recovery in another post because it was definitely weird to not strength train for months.

But in THIS post, I want to share two things:

1. I am SO grateful to my wife Erin for being the supportive and growth oriented partner that she is. 🥰🙏❤️ 

She is now following her call to get a divinity degree and she’s already working in ministry as a Pastor in Training at an incredible, inclusive Presbyterian church here in Virginia. I am grateful to her for supporting me as I become more and more of who I am—and I’m enjoying watching her do the same! Love you, babe!

2. Second, I’m grateful to get to share who I am with my family. This summer we took a trip to Madden’s resort in MN to celebrate my parent’s 50th wedding anniversary. (It was actually their 52nd, because we had to postpone it twice due to Covid.)

I was nervous to be in the pools and lakes around them, but I could feel it was my only choice because I knew I wanted them to “know me”. And, how could that happen if I “hid me”?

Ultimately, I have to tell you…it was freeing to be me, as I am, who I am. 

I had the BEST time splashing around and biking and goofing around with my wife, niece, nephew, & sister. 🌊🏖🐟

So, I suppose, this is a gratitude post to thank those who have supported me over the years as I become more and more of who I am. 

Top of that list is my wife, Erin, but there are countless others. ❤️

If you’re reading this, thank YOU for being one of those people in my life too. I am deeply grateful. 🥹
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#lgbtqfamily #nonbinary
How to set a boundary? 🤔 . . . . #lgbtqia #lgb How to set a boundary? 🤔 
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#lgbtqia #lgbtqcommunity #emotionalhealth
What do you do if you’re telling a past story ab What do you do if you’re telling a past story about someone who has transitioned? 🤔 Share a 💯 if you agree ➡️🏳️‍⚧️🏳️‍🌈
7 things I got clarity on in 2022: 1. Good and b 7 things I got clarity on in 2022: 

1. Good and bad are labels. All things are experiences. 

2. Maturity is taking full responsibility for oneself. 

3. Having a loving, conscious relationship with myself is a core value. 

4. Emotions do not mean that anything has to be done. 

5. When I am in congruence with what I want, I have it. 

6. I have permission from myself to stop doing anything that doesn’t lead to my peace and empowerment. 

7. Stepping toward emotions and being able to feel them is a superpower. It determines the quality of my life. 

(Are there any above that you’d like me to further explain?)
 
Most importantly, which # above resonates with you? ⬆️

Happy New Year, y’all! 🎊🥳
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#lgbtqcommunity #lgbtqiaplus #lgbtsupport #nonbinary #trans #selfgrowth
Interview with Jenny Nguyen, Founder of the Sports Interview with Jenny Nguyen, Founder of the Sports Bra—The World's 1st Bar to Only Play Women's Sports - shorturl.at/doGHZ

I'm excited to introduce you to today's #podcast guest, Jenny Nguyen, who is a professional chef, elite athlete, and entrepreneur.

I invited Jenny onto the podcast because she has done something extraordinary that is long overdue: She has opened up a sports bar that exclusively plays women's sports!

Despite extensive research, Jenny hasn't found another sports bar worldwide that ONLY plays women’s sports.

Given that it's nearly 2023, this is mind-blowing. As a lifelong athlete, I find her vision compelling and inspiring.

Aptly called the "The Sports Bra", the venue is putting Jenny's culinary skills on display alongside women's sports worldwide.

The Sports Bar has taken its mission a even further by partnering with and elevating other local, women-owned businesses.

Specifically, it:

1. Sources its grass-fed beef from @CarmanRanch, an ranch run by Cory Carman, a third gen rancher out of Wallowa, Oregon).

2. Sources its alcohol from Freeland Spirits, an all-women owned and operated distillery out of NW Portland.

3. Has furniture built by @girlsbuild_org, a non-profit organization headed by @ktmhughes in Portland, OR, that teaches carpentry and construction skills to young girls as a path to empowerment.

Since opening the Sports Bra this April, people have come from ALL over the U.S. and the world to experience it—including many professional female athletes.

To learn more about Jenny as she makes history, features women's sports, and elevates women-run businesses, listen to the episode here:

shorturl.at/doGHZ

Or, you can check out the Sports Bra at:

@thesportsbrapdx
TheSportsBraPDX.com/

Have you heard of the Sports Bra or been out to experience it in person?

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Over this recent holiday stretch, we… - enjoye Over this recent holiday stretch, we… 

- enjoyed some quiet time at home
- got a sauna delivered (but not yet installed)
- decorated for the holidays
- baked a bunch
- visited our favorite farm
- did some sight seeing
- and perhaps, most importantly, survived the cold snap along with our feather friends (who lived in the garage for a few days so we could heat them with a space heater) 🥶🐔

How have the holidays treated you…and did you get hit by the winter storms? ❤️🎁☃️❄️
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