Below you will find Investment News‘ list of the average assets under management per rep at the biggest independent broker-dealers. The information was compiled from data that came from the investment firms that took part in a yearly survey.
Ranked in the Top 10 were:
1. Wells Fargo Advisors Financial Network, with a $48,322,148 average AUM/rep 2. Commonwealth Financial Network, with a $39,208,423 average AUM/rep 3. Raymond James Financial Services Inc., with a $36,046,959 average AUM/rep 4. First Allied Securities Inc., with a $30,315,640 average AUM/rep 5. Uvest, a unit of LPL Investment Holdings Inc., with a $29,505,358 average AUM/rep 6. FSC Securities Corp., a unit of Advisor Group, with a $28,705,827 average AUM/rep 7. Ameriprise Financial Services Inc., with a $28,511,100 average AUM/rep 8. VSR Financial Services Inc., with a $28,089,888 average AUM/rep 9. M Holdings Securities Inc. (M Securities), with a $27,684,707 average AUM/rep 10. Securities America Inc., with a $27,418,520 average AUM/rep
“The average commission on money under management is about one percent (except for bond accounts which is lower), which means that brokers in the $50 million under management should generate about $500,000 in gross commissions per year (they receive 30% to 60% of this), says Shepherd Smith Edwards and Kantas Founder and Securities Fraud Lawyer William Shepherd. “Considering that one doesn’t even need a high school diploma to become a financial advisor, making an average income of $150,000 to $300,000 is not bad at all. Last time I looked, brokers at the large financial firms, on average, made a little less than doctors, but far more than lawyers. Seven years of education does not do much for professionals does it?”