Brokerage vs Advisory


The brokerage relationship offers the execution of securities transactions on behalf of clients for a commission with no legal requirement or expectaction to provide continual monitoring of investments. Typically provided by a stockbroker who may also be known as a registered representative (RR). Recemmendations are based on Best Interest regluations. Stockbrokers must hold the FINRA Series 7 and Series 63 or 66 licenses, and be sponsored by a registered investment firm. 


The advisory relationship provides financial advice to customers on a continual basis for compensation. Typically provided by a financial advisor who may also be known as a Registered Investment Advisors (RIAs). Financial advisors offer advice in a fiduciary capacity as dictated by the Investment Advisers Act of 1940 and often provide financial and strategic planning. Financial advisors must hold the Series 65 or 66 license to conduct business with the public.