Broker Check

Sorry If You Got The Wrong Impression

| April 21, 2017
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The graphic above, from Wednesday's Wall Street Journal, shows that traditional brokerage firms have been bleeding assets at an unprecedented rate over the last 7+ years at the expense of independent, fiduciary-minded financial advisory firms like Servo.  In 2010, commission-based brokers (JP Morgan, Citigroup, Goldman Sachs, Merrill Lynch, Morgan Stanley, Wells Fargo, LPL, Edward Jones, and every bank brokerage department in your town) controlled almost 2/3 of investors' assets.  For the first time in history, we might see that amount fall to less than 50% in 2017.

Want a better appreciation for why this is happening?  The video below is a fairly accurate representation of the brokerage model and their customer relationships:

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