Registered Investment Advisor vs Broker?

Understanding the differences between a Registered Investment Advisors(RIA) vs Broker

Although many brokers offer investment advice and financial planning services (and often portray themselves as "advisors" in their marketing materials), there are fundamental differences between a broker and an Independent Registered Investment Advisor (RIA) like Whiston Asset Management Group, Inc. (WAMG)


Broker - Primarily in the business of buying and selling securities for commission.

RIA-WAMG - In the business of providing advice and managing money for a fee.


Broker - Representatives are typically contractors or employees of a larger broker dealer.

RIA-WAMG- Independent, and not owned by another company.


Broker - Typically compensated by commissions and mark ups on transactions; NOT required to disclose compensation.

RIA-WAMG- Compensated by fees; all of which are fully disclosed and deductible with no commissions on investment products.


Broker - Regulated primarily by The Financial Industry Regulatory Authority.

RIA-WAMG - Regulated by the Securities and Exchange Commission and applicable state laws.


Broker - Held to "suitability standards" - must have reasonable grounds to believe a transaction they recommend is suitable for the investor.

RIA-WAMG - Held to FIDUCIARY standards - required to act in our clients' best interests at all times.