4 Reasons Small BDs Are Under Pressure
June 11, 2019 by ThinkAdvisor
Higher interest rates are enabling money market accounts, sweep accounts and margin accounts to contribute noticeable profit increases to the bottom lines of some broker-dealers.
But though we’ve seen a bump up in profitability for BDs in general, we also see some worrisome trends unique to smaller organizations, which will work against their future survival.
Here are the four trends most affecting small broker-dealers today:
- Fewer mutual fund sales and more ETF sales;
- Fewer REIT and alternative investment sales;
- More retiring advisors, lower rates of succession plans and recruiting difficulties; as well as
- A lack of scale, which puts them at a disadvantage on the services they offer, their technology and profitability
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Originally Posted at ThinkAdvisor on June 06, 2019 by ThinkAdvisor.
Categories: Industry Articles