Hello my gun touting Yank friends
I'm based in the UK, and I'm considering joining EJ. I'm currently a 'tied adviser', working for an insurance company.
I was considering going Indy, however, the 'UK Indy' is very different to the 'US Indy' IIRC.
UK Indys do NOT offer stockbroking services - they sell mutual funds, investment bonds, tax planning advice, insurance etc.
The EJ UK proposition is the first to encompass a stockbroking service and a financial advisory service within the UK.
I was wondering: Would The EJ haters who have strong preferences for staying Indy settle for this limited 'UK Indy' role? Or would they consider the loss of the stockbroking service enough of a reason to make them consider joining the 'big green machine'??!
Is there a demand for stock brokerage services?? Or can they just go online(because it will be way cheaper than what you will be able to offer).?
There's not a huge demand for stock brokerage services, and for the few who do trade in sngle shares, then yes you're correct in assuming that they'll more than likely use online facilities as oppose to a higher cost EJ broker.
I see the advantages for the EJ stockbroker/advisor as:
1. Being able to offer single company corporate bonds - UK Indys can only invest in Corporate Bond Mutual Funds)
2. The nominee account is a faster and more efficent vehicle for investing money - A UK Indy must fill out investment/insurance company application forms, and send them in with a cheque. Therefore switchng between investments means making an insturction to cash in the investment, then waiting for the cheque to arrive, then waiting for the cheque to clear, and then finally sending a cheque for the new investment.
3. Being able to offer solicitors probate valuations, to try and establish a mutually beneficial business relationship.
4. Being able to bring single company shares, that alot of people have lying about, into the 'portfolio'.
Diadvantages is that currently UK EJ advisors do NOT have a fee based model to work with.