4 Questions to Ask Your Future Broker-Dealer

4 questions to ask your broker dealer

Choosing the right broker-dealer is critical for financial advisors. Your relationship with a broker-dealer can impact how you run your day-to-day operations—and in the best case, bolster your long-term business. But how do you decide which broker-dealer is right for you? To ensure you find the best fit for your practice, here are four essential questions to ask in your next broker-dealer conversation:

What is your regulatory and compliance philosophy?

One of the first questions to ask a prospective broker-dealer surrounds their regulatory and compliance practices. Compliance plays an essential role in the financial advisory industry, and ensuring your broker-dealer is well-versed in adhering to the regulatory guidelines can help safeguard your clients and your practice.

Ask the broker-dealer how they stay updated on the changing regulatory landscape, how they handle compliance training for their advisors and whether they offer resources to help advisors maintain compliance with various regulations. You should also consider inquiring about any past compliance issues the firm might have faced and how they were resolved. They will likely be unable to give specific details, but even a high-level answer can help you better understand how the broker-dealer handles challenging situations.

Can you tell me about your technology?

In this digital age, technology is just part of a financial advisor’s daily routine. The right platform and tools can enhance efficiency, streamline processes, and improve client experiences. Before partnering with a broker-dealer, take time to understand their technology offerings and how they integrate with your existing systems.

Ask about the platform’s features, user-friendliness, and the extent of support available for learning and troubleshooting. Make sure their technology aligns with your specific needs and allows you to effectively deliver top-notch services to your clients. A broker-dealer that invests in cutting-edge technology demonstrates their commitment to your success as an advisor.

What is your product and investment menu?

A comprehensive product and investment menu helps financial advisors cater to their client’s unique needs and goals. Ask the prospective broker-dealer about the range of products and investment options available to advisors and their clients.

Inquire about the due diligence process for selecting products and the criteria for adding or removing investment options from the menu. An ideal broker-dealer should offer a balanced mix of traditional and alternative investment options and provide ample research and support to help advisors make informed decisions.

What extra broker-dealer services do you offer?

Continuous education and professional development are essential for financial advisors to stay competitive and adapt to the evolving economic landscape. A broker-dealer that invests in its advisors’ growth demonstrates a commitment to long-term success.

Ask about the support and training programs available, including workshops, seminars, webinars, ebooks, and certification opportunities. A broker-dealer that prioritizes your growth and development will help you feel confident that you’re prepared to support your clients.

Taking the Next Step

Selecting the right broker-dealer is a decision that can shape the trajectory of your financial advisory practice. Financial advisors can gain valuable insights into a prospective broker-dealer’s regulatory practices, technology, product offerings, and support services by asking these four questions.

Armed with this information; you can make a well-informed decision and find a broker-dealer that aligns with your business goals and helps support your long-term success as a financial advisor. Remember, the partnership between an advisor and their broker-dealer is a collaborative journey toward achieving your client’s goals. At Concorde, we call that “entrepreneurs serving entrepreneurs.” If you want to learn more about what we offer and talk to a member of our team, don’t hesitate to reach out today.

This is for informational purposes only and does not guarantee representative or advisor results. Individual circumstances and outcomes may vary. Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products offered through Concorde Insurance Agency, Inc. (CIA).