Five Incorrect Assumptions To Avoid Regarding Independent Broker-Dealers

Unfortunately, there are a lot of commonly held beliefs regarding independent broker-dealers that are inaccurate and discourage firms from taking advantage of their services.

The following are five incorrect assumptions you should avoid having regarding independent broker-dealers so that you take full advantage of the value propositions broker-dealers offer. 

Compliance with regulations is easier without working with an independent broker-dealer.

One of the most important things investors need to do to keep their business healthy and out of trouble is complying with regulations.

Broker-dealers understand regulations and know to comply with them in the services they offer their customers. They can help investors to stay compliant and ensure that investors remain compliant without having to put a lot of extra time and effort into keeping up with regulation changes over time. 

Independent broker-dealers offer more or less the same services to all their clients.

These days, broker-dealer services can be highly customized according to the needs of individual investors.

Advisers doing business with broker-dealers can select from different business models that broker-dealers offer. These business models fit in with the particular independence level and value propositions that individual advisers are looking for. 

Success is easier when control over business decisions is not handed over to independent broker-dealers.

Many advisers out there can stand to benefit enormously from taking advantage of the support and infrastructure resources that broker-dealers can offer.

Broker-dealers these days will work with advisers to give them the optimal level of control over their investment decisions and business for their unique needs and priorities. 

Independent broker-dealer services aren't worth their cost.

Broker-dealers can improve the bottom line of an investor in numerous ways. They offer support and tech platforms that can significantly increase the profitability of investment ventures. They also provide services like administrative assistants and practice management. 

The value provided by broker-dealers isn't limited to monetary considerations. One highly valuable contribution a broker-dealer provides to investors is the ability to free up time and focus on main business tasks. Investors working with broker-dealers aren't as distracted by routine administrative and management tasks. This makes it so that they can devote more time to their main business focuses. 

Independent broker-dealers don't offer only very simple technology options.

These days, broker-dealers are offering more and more in terms of technology stacks that are sophisticated and capable of meeting investor expectations. 

Broker-dealers now offer a range of technology options when it comes to resources like CRM systems, financial planning tools, and software to help investors/advisers manage their portfolios.