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 when it comes to investment fraud law in Washington. A broker-dealer is a person or firm that engages in the buying and selling of securities or commodities for their clients. A broker-dealer is required to be licensed by the state in order to conduct business in Washington. Broker-dealers can also provide investment advice related to the securities they have bought or sold for their clients. On the other hand, an investment adviser is a person or firm that provides financial advice and services related to investments, including advice about stocks, bonds, mutual funds, and other investments. Investment advisers must also be licensed in Washington in order to practice. Unlike a broker-dealer, an investment adviser does not actually buy or sell securities, but instead provides advice related to investments. Investment advisers are held to a higher standard of care than broker-dealers and must act in the best interests of their clients.

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

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