Raging bulls, skyrocketing energy production, baby boomer retirement—for such a seemingly volatile industry, in the past year, surprisingly little has changed. The same regulations—and specter of future regulations—continue to excite, fee compression pressure builds and grandiose predictions of boom and bust clog conventional wisdom. Through it all, independent broker-dealers continue to execute, mindful of the needs of the advisors and the clients they serve. So the "positions have changed, the names remain," may be perhaps the most succinct way to describe this year's guide, our annual temperature-taking of the independent broker-dealer industry.
Click through the following pages to see the top independent broker-dealers by annual revenue, number of reps and more. You can also download a PDF of the guide here.
By Annual Revenue
LPL Financial, Raymond James Financial Services and Commonwealth Financial Network—the perennial "Big Three." Who will come along to shake things up? Are there contenders on the horizon? One obvious point is how Cetera listed themselves. Combine the BD group's three entries and they make a run. Interesting to see Royal Alliance land in the top 10 after everything parent company AIG Advisor Group has endured (For more on that, see Larry Roth's extended profile from the 2013 IA 25 on AdvisorOne.com).
| Rank | Company | 2012 Gross Revenue ($ Mil.) | 2012 BD Total Expenses ($ Mil.) | 2012 Fee-Based Revenue ($ Mil.) | 2012 Avg. BD Concession per Rep ($ Thous.) |
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| 1 | LPL Financial LLC | $3,580.0 | $3,200.0 | $1,050.0 | $211.6 |
| 2 | Raymond James Financial Services | $1,180.0 | $1,060.0 | $411.6 | $356.5 |
| 3 | Commonwealth Financial Network | $712.1 | NA | $374.2 | $400.6 |
| 4 | AXA Advisors, LLC | $625.0 | NA | NA | NA |
| 5 | Northwestern Mutual | $553.6 | NA | $236.9 | $70.3 |
| 6 | Cambridge Investment Research, Inc. | $461.4 | $436.4 | $230.7 | $191.5 |
| 7 | Securities America, Inc. | $444.3 | NA | $158.5 | $253.5 |
| 8 | Royal Alliance Associates | $388.4 | NA | $160.8 | $208.0 |
| 9 | NFP Advisor Service Group (& Affiliates) | $364.8 | NA | $104.0 | $282.5 |
| 10 | Waddell & Reed Financial, Inc. | $361.6 | $371.1 | $115.8 | $168.2 |
| 11 | Cetera Advisor Networks | $360.5 | $358.5 | $137.9 | $176.6 |
| 12 | National Planning Corporation | $346.8 | NA | $87.8 | $210.0 |
| 13 | Securian Financial Services | $291.2 | NA | $55.2 | $99.5 |
| 14 | Signator Investors, Inc. | $263.0 | $282.8 | $31.6 | $76.5 |
| 15 | FSC Securities Corp. | $263.0 | NA | $87.7 | $219.0 |
| 16 | H.D. Vest Financial Services | $248.3 | NA | $87.0 | NA |
| 17 | Woodbury Financial Services, Inc. | $243.3 | $243.3 | $29.8 | $155.0 |
| 18 | Princor Financial Services Corporation | $242.0 | $235.6 | $30.9 | $98.4 |
| 19 | INVEST Financial Corporation | $236.8 | NA | $43.7 | $181.8 |
| 20 | SagePoint Financial, Inc. | $236.0 | NA | $64.0 | $147.0 |
| 21 | First Allied Securities, Inc. | $233.0 | $230.3 | $68.7 | $292.5 |
| 22 | Transamerica Financial Advisors, Inc. | $232.6 | NA | $52.5 | NA |
| 23 | Cetera Advisors | $210.0 | $206.0 | $72.4 | $194.6 |
| 24 | Cetera Financial Institutions LLC | $192.2 | $183.6 | $10.6 | $113.3 |
| 25 | SII Investments, Inc. | $166.3 | NA | $40.8 | $242.4 |
All data is as of December 31, 2012, and was supplied by the broker-dealers themselves. Investment Advisor has not independently confirmed the data.
By Number of Reps
As any M&A advisor will surely say, the value of a business is only the sum of its people. It's one reason rep retention is always a focus with our Broker-Dealer of the Year award winners each September. Cost aside (we all know the difference in expense between recruiting and retaining), but a happy rep force makes it pleasant to come to work every day, and ensures they truly are doing what's best for the client.
| Rank | Company | Producing Reps | Reps Added in 2012 | Reps Dropped in 2012 | Firm's Years in Business |
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| 1 | LPL Financial LLC | 13,336 | NA | NA | 45 |
| 2 | Northwestern Mutual | 5,667 | NA | NA | 45 |
| 3 | AXA Advisors, LLC | 4,673 | 990 | 1,055 | 13 |
| 4 | H.D. Vest Financial Services | 4,581 | 433 | 553 | 30 |
| 5 | Transamerica Financial Advisors, Inc. | 4,565 | 668 | NA | 29 |
| 6 | Raymond James Financial Services | 3,205 | 508 | 508 | 37 |
| 7 | Cambridge Investment Research, Inc. | 2,241 | 514 | 331 | 32 |
| 8 | Princor Financial Services Corporation | 2,049 | 384 | 340 | 45 |
| 9 | Waddell & Reed Financial, Inc. | 1,763 | 331 | 384 | 76 |
| 10 | Securities America, Inc. | 1,724 | NA | NA | 29 |
| 11 | Cetera Advisor Networks | 1,710 | 133 | 265 | 30 |
| 12 | Royal Alliance Associates | 1,702 | 124 | 142 | 24 |
| 13 | SagePoint Financial, Inc. | 1,650 | 168 | 194 | 43 |
| 14 | Signator Investors, Inc. | 1,602 | 338 | 411 | 45 |
| 15 | Cetera Financial Specialists | 1,470 | 1,627 | 157 | 32 |
| 16 | Commonwealth Financial Network | 1,445 | 126 | 95 | 37 |
| 17 | National Planning Corporation | 1,388 | 180 | 202 | 15 |
| 18 | Cetera Financial Institutions LLC | 1,343 | 272 | 342 | 29 |
| 19 | NFP Advisor Service Group (& Affiliates) | 1,291 | 70 | 127 | 16 |
| 20 | Ameritas Investment Corp. | 1,276 | 107 | 158 | 28 |
| 21 | INVEST Financial Corporation | 1,188 | 204 | 173 | 30 |
| 22 | Cetera Advisors | 1,076 | 324 | 72 | 32 |
| 23 | FSC Securities Corp. | 1,064 | 74 | 135 | 55 |
| 24 | Securian Financial Services | 1,053 | NA | NA | 29 |
| 25 | Woodbury Financial Services, Inc. | 1,050 | 83 | 371 | 103 |
All data is as of December 31, 2012, and was supplied by the broker-dealers themselves. Investment Advisor has not independently confirmed the data.
By Highest Average Production
For quality over quantity, Commonwealth takes the cake. The Waltham, Mass.-based home of the "sophisticated advisor" prides itself on providing the necessary accoutrements of high production—first-rate transition team, cutting-edge technology and, of course, vice president of practice management Joni Youngwirth (see "Power in Practice: Wrapping Up," Investment Advisor, June 2013).
| Rank | Company | Avg. Annual Gross Production per Advisor | Avg. AUM per Advisor ($ Mil.) | AUM in Fee-Based Programs ($ Bil.) | Excess Capital ($ Mil.) |
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| 1 | Commonwealth Financial Network | $400,639 | $54.6 | $33.4 | $12.7 |
| 2 | Raymond James Financial Services | $356,535 | $44.6 | $53.5 | $15.8 |
| 3 | VRS Financial Services, Inc. | $345,130 | NA | $3.7 | $1.9 |
| 4 | Geneos Wealth Management, Inc. | $343,086 | $45.0 | $4.5 | $0.4 |
| 5 | Prospera Financial Services | $300,000 | $28.0 | $1.2 | $2.5 |
| 6 | Founders Financial Securities, LLC | $296,534 | $26.0 | $0.4 | $0.7 |
| 7 | First Allied Securities, Inc. | $292,534 | $28.9 | $6.3 | NA |
| 8 | NFP Advisor Service Group (& Affiliates) | $282,533 | $55.7 | $10.8 | $17.2 |
| 9 | M Holdings Securities, Inc. | $254,272 | $17.2 | $3.5 | $1.4 |
| 10 | Securities America, Inc. | $253,485 | $27.3 | $14.6 | NA |
| 11 | SII Investments, Inc. | $242,430 | $29.0 | $4.3 | $7.8 |
| 12 | Summit Brokerage Services, Inc. | $235,000 | $30.0 | $1.6 | $6.0 |
| 13 | Triad Advisors | $224,554 | $30.1 | $2.4 | $2.3 |
| 14 | FSC Securities Corp. | $219,000 | $24.0 | $10.9 | $12.1 |
| 15 | Investment Centers of America | $217,240 | $30.6 | $1.8 | $6.7 |
| 16 | Williams Financial Group | $213,000 | $30.0 | $1.7 | NA |
| 17 | LPL Financial LLC | $211,637 | $28.0 | $122.1 | $98.5 |
| 18 | United Planners Financial Services | $210,000 | $25.1 | NA | $4.4 |
| 19 | National Planning Corporation | $209,957 | $25.9 | $9.5 | $11.5 |
| 20 | Royal Alliance Associates | $208,000 | $26.0 | $18.0 | $10.6 |
| 21 | Securities Service Network, Inc. | $206,064 | $30.6 | $6.2 | $3.7 |
| 22 | Cambridge Investment Research, Inc. | $205,900 | $21.7 | $25.4 | $14.6 |
| 23 | Cetera Advisor Networks | $197,634 | NA | $12.7 | $2.4 |
| 24 | Cetera Financial Institutions LLC | $197,634 | $30.0 | NA | NA |
| 25 | Kalos Capital | $190,000 | $20.0 | $3.5 | $2.8 |
All data is as of December 31, 2012, and was supplied by the broker-dealers themselves. Investment Advisor has not independently confirmed the data.
By Friendliness to RIAs
Might there be a reason so many BDs have taken to the independent channel? Jim Dario, managing director of product management for TD Ameritrade Institutional, noted at this year's NAPFA spring conference in Las Vegas that the independent channel is the fastest growing channel in financial services, and has experienced 68% growth since 2005. "One group's pain is another group's gain," Dario said.
| Rank | Company | Reps With Their Own RIA | CFPs in Total Rep Force | Average Years Experience (per Advisor) |
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| 1 | Triad Advisors | 83.0% | 36.9% | 18 |
| 2 | Securities Service Network, Inc. | 52.3% | 31.9% | NA |
| 3 | United Planners Financial Services | 32.9% | 23.5% | 15 |
| 4 | Royal Alliance Associates | 27.9% | NA | NA |
| 5 | American Portfolios Financial Services, Inc. | 25.5% | 11.0% | 18 |
| 6 | National Planning Corporation | 19.2% | NA | NA |
| 7 | Securities America, Inc. | 18.7% | 27.6% | NA |
| 8 | Cambridge Investment Research, Inc. | 15.4% | 26.5% | 18 |
| 9 | LPL Financial LLC | 15.3% | NA | 14 |
| 10 | Geneos Wealth Management, Inc. | 14.7% | 31.3% | 20 |
| 11 | Crown Capital Securities, L.P. | 14.1% | 22.1% | 17 |
| 12 | Independent Financial Group | 14.0% | 15.2% | 17 |
| 13 | Commonwealth Financial Network | 13.1% | 45.5% | NA |
| 14 | LaSalle St. Securities LLC | 12.8% | 9.0% | 14 |
| 15 | First Allied Securities, Inc. | 10.0% | 21.6% | 19 |
| 16 | The Strategic Financial Alliance, Inc. | 9.9% | 14.7% | NA |
| 17 | FSC Securities Corp. | 8.7% | NA | NA |
| 18 | WRP investments, Inc. | 8.6% | 16.3% | 53 |
| 19 | SagePoint Financial, Inc. | 7.8% | NA | NA |
| 20 | Prospera Financial Services | 7.1% | 9.7% | 22 |
| 21 | Capital Investment Companies | 7.0% | 11.1% | NA |
| 22 | Capital Financial Group/H. Beck, Inc. | 7.0% | 7.9% | NA |
| 23 | M Holdings Securities, Inc. | 6.7% | 13.0% | NA |
| 24 | Investors Capital Corporation | 6.4% | 5.9% | 13 |
| 25 | Kalos Capital | 6.1% | 7.6% | 18 |
All data is as of December 31, 2012, and was supplied by the broker-dealers themselves. Investment Advisor has not independently confirmed the data.
By Home Office Support
Service, service, service—the quality of the person on the other line, their technical expertise, how receptive they are to ideas and concerns, and whether or not they call you back in a timely manner are critical components in the aforementioned rep retention. Invest in your home office staff or spend more on recruitment to make up for advisors who leave. Either way it will cost you, but in this case, less is better.
| Rank | Company | Ratio of Reps to Home Office Staff | Home Office Staff | Staff Recruiters | Compliance Professionals |
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| 1 | Century Securities | 1.0 : 1 | 150 | 1 | 50 |
| 2 | Raymond James Financial Services | 1.3 : 1 | 2,495 | 9 | 103 |
| 3 | Correll Co. Investment Services Corp. | 1.5 : 1 | 4 | 0 | 1 |
| 4 | Cetera Financial Institutions LLC | 2.5 : 1 | 547 | NA | NA |
| 5 | First Allied Securities, Inc. | 2.5 : 1 | 261 | 5 | 59 |
| 6 | Cetera Advisors | 2.5 : 1 | 427 | NA | NA |
| 7 | Commonwealth Financial Network | 2.7 : 1 | 540 | 7 | 48 |
| 8 | PlanMember Securities | 3.0 : 1 | 128 | 4 | 5 |
| 9 | Prospera Financial Services | 3.1 : 1 | 37 | 3 | 5 |
| 10 | Williams Financial Group | 3.1 : 1 | 84 | 2 | 9 |
| 11 | Kalos Capital | 3.1 : 1 | 21 | 1 | 3 |
| 12 | Cetera Financial Specialists | 3.5 : 1 | 423 | NA | NA |
| 13 | Investment Centers of America | 3.7 : 1 | 85 | 2 | 15 |
| 14 | VRS Financial Services, Inc. | 3.7 : 1 | 74 | 1 | 8 |
| 15 | Cetera Advisor Networks | 3.8 : 1 | 448 | NA | NA |
| 16 | Berthel Fisher & Co. Financial Services, Inc. | 4.4 : 1 | 74 | 3 | 8 |
| 17 | J.P. Turner &Company, LLC | 4.5 : 1 | 100 | 4 | 10 |
| 18 | Cambridge Investment Research, Inc. | 4.5 : 1 | 497 | 26 | 52 |
| 19 | Summit Brokerage Services, Inc. | 4.5 : 1 | 76 | 5 | 12 |
| 20 | Securities America, Inc. | 4.6 : 1 | 378 | 11 | 67 |
| 21 | LPL Financial LLC | 5.0 : 1 | 2,687 | NA | 317 |
| 22 | Founders Financial Securities, LLC | 5.0 : 1 | 12 | 1 | 3 |
| 23 | FSC Securities Corp. | 5.3 : 1 | 202 | 3 | 28 |
| 24 | Woodbury Financial Services, Inc. | 5.3 : 1 | 199 | 21 | 37 |
| 25 | NEXT Financial Group | 5.3 : 1 | 146 | 5 | 29 |
All data is as of December 31, 2012, and was supplied by the broker-dealers themselves. Investment Advisor has not independently confirmed the data.
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