Top 10 by BD Gross Revenue
The largest independent broker-dealer in the field continuesto be LPL Financial, which had gross revenues of over $5.6billion in 2019. Its gross profits were about $2.2 billion, andits net income was $560 million. “We recruited $35 billion ofassets over the full year, which was up from over $27 billion inthe prior year,” according to President and CEO Dan Arnold.
IBD Raymond James Financial Services contributed some
$2.6 billion of revenue to its parent company, which includes
an employee-advisor segment and other businesses; in its fis-
cal year ending Oct. 31, 2019, the firm’s Private Client Group
had net revenues of nearly $5.4 billion and over 8,000 advisors.
Other IBDs with strong gross revenue in 2019 includeCommonwealth, Northwestern Mutual, MML, Cambridgeand Advisor Group’s Royal Alliance. Commonwealth said lastfall that its fourth-quarter revenues were about 85% fee basedand that commissions represent “an ever-shrinking number.”
Top 10 by Number of Registered RepsLPL boosted its headcount by 355 from last year’s Top 10 list.It added 115 net new advisors in the fourth quarter. To stayahead of rivals, the IBD’s “first strategic play involves winningin our traditional independent and institutional markets whilealso expanding our affiliation models,” Arnold says. It recentlyrolled out offerings for RIAs and employee advisors.
In the No. 2 slot is MML Investors Services, the RIA and
BD arm of MassMutual. Last year, it added the Brinker Capital
Wealth Advisory to its platform, and MassMutual signed a
licensing deal with Commonwealth’s tech entity, Advisor360.
Northwestern Mutual says its advisors and their teams “are
increasingly being recognized as among best in the industry,”
says Evamarie Schoenborn, head of its wealth management
company. Other IBDs with 2,000-plus indie advisors are
RJFS, Avantax, Cambridge, Royal Alliance, Advisor Group’s
Woodbury, Securities America and Commonwealth.
Avg. Gross Dealer
Con. per Rep
LPL Financial $5,625.0 $4,750.0 $3,149.0
Raymond James Financial Services, Inc. $2,611.0 - - $680.3Commonwealth Financial Network $1,552.7 - $1,052.7 $627.1Northwestern Mutual Investment Services, LLC $1,351.2 - $892.4 $199.1MML Investors Services, LLC $1,184.7 - $484.3 $113.7Cambridge Investment Research, Inc. $1,000.6 $940.6 $541.0 $298.5Royal Alliance Associates $961.1 $118.5 $229.2 $332.8Securities America $729.5 - $319.3 $242.0Kestra Financial $570.7 - $319.2 $424.9Waddell & Reed Financial Advisors $513.8 - $267.5 $379.1
Reps as of
Dec. 31, 2019
Added in 2019
Dropped in 2019
Number of Years
LPL Financial 16,464 - - 31MML Investors Services, LLC 8,336 396 843 39Northwestern Mutual Investment Services, LLC5,112 - - 52Raymond James Financial Services, Inc. 4,347 356 278 46Avantax Wealth Management* 3,431 169 579 37Cambridge Investment Research, Inc. 3,407 322 271 39Royal Alliance Associates 2,888 - - 50Woodbury Financial Services 2,667 - - 52Securities America 2,608 - - 36Commonwealth Financial Network 2,007 - - 40
* Includes the acquired firms HD Vest and 1st Global, as well as other Avantax businesses.* Average gross dealer concessions per registered representative in thousands of dollars.