The debate continues over when-or if-the wirehouse broker exodus will happen. TD Ameritrade Institutional announced it has attracted 212 breakaway brokers in fiscal 2010, surpassing the total number of advisors making the move to independence in all of 2009. This corresponds to a 44% increase from the first three quarters of last year.
“Despite Wall Street’s attempt to play down the breakaway broker trend, the numbers indicate there has and will continue to be a strong move to independence,” said Tom Bradley, president of TD Ameritrade Institutional, in a statement. “In fact, we’re adding an average of over one new breakaway broker [each] business day.”
The fee-based fiduciary business model of independent registered investment advisors is becoming more attractive to brokers who are tied to legacy technology, proprietary products and sales-driven cultures, Bradley says.