RIA vs indy

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Jun 29, 2005 7:24 pm

do ria's need an broker/dealer, i didn't think so just a clearing firm.


So can someone compare an ria with no b/d and an independent with a b/d.


What is route for someone looking for highest payout on net assets under management fee, at the same time no initial requirements on production and complete independence?


Thanks.

Jul 2, 2005 4:45 pm

SRIboom,


You need a financial institution to hold custody of the accounts. That were an introducing BD comes into play. The BD is the one that has the clearing agreement with the Clearing firm.


Some clearing firms will clear and specialize in setting up agreements directly with the RIA. But normally they require you to have ceratin assets under management and may require a good faith deposit.


If you are a small RIA your best bet is to establish yourself with an IBD. Independent Broker Dealer. If you still have your 7 license and do commission base business setting your self up with a BD can be beneficial since they will allow you to do both Commission/transaction base business s-7 as well as fee based business under your RIA.


The route for someone looking for the g=highest pay out is to go independent. Check out register rep magazine..in the classifieds.


Hope this helps.


Francisco Otalvaro


[email protected]



Jul 7, 2005 3:38 pm
SRIboom:

do ria's need an broker/dealer, i didn't think so just a clearing firm.


So can someone compare an ria with no b/d and an independent with a b/d.


What is route for someone looking for highest payout on net assets under management fee, at the same time no initial requirements on production and complete independence?


Thanks.



Call up Fidelity Institutional and TD Ameritrade. They can tell you everything you need to know about cutting out the burdensome NASD.


http://ria.fidelity.com/


http://www.tdwaterhouse.com/


Another one worth taking a look at is EAInvest.


http://www.eainvest.com/


Even Pershing, once the bastion clearing and custody of indy B/Ds will now work with a truly indy RIA, without a B/D getting in the way. They want some assets, though.


The others? They will negotiate. You just have to ask, and you'll be surprised at how eager they are to help you do your thing withOUT the NASD getting in the way.

Jul 7, 2005 6:15 pm

Apparently, the First Amendment is NOT actively promoted here. Censors are everywhere, just like those vultures in Casablanca.

Jul 7, 2005 10:52 pm

What in the world are you talking about???

Jul 8, 2005 3:24 am

[quote=babbling looney]What in the world are you talking about???[/quote]



It's an insider joke.