What is the difference between a broker-dealer and an investment adviser?

The difference between a broker-dealer and an investment adviser is important to understand in Washington with regards to investment fraud law. A broker-dealer is a company or individual who buys and sells securities. They are in the business of making trades and earn their money through commission on the trades that they make. It is their job to make sure that the securities they trade are properly handled and that all laws and regulations regarding the trading of those securities are followed. An investment adviser, on the other hand, provides advice and services related to investments. They are responsible for providing advice on the type of investments that are suitable for their clients and providing financial advice on what investments would be most profitable for the client. They earn their money through a fee which is either a flat fee or based on the assets under management of the client. In summary, a broker-dealer is someone that buys and sells securities and earns their money through commission, while an investment adviser provides advice and services related to investments and earns their money through a fee. In Washington, it is important to know the difference between these two as they are regulated differently when it comes to investment fraud law.

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What is the difference between a broker-dealer and an investment adviser?

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