Do Your Homework Before Joining a Small BD

It’s imperative that advisors who say they crave the feel and responsiveness of a smaller BD, perform an extra level of due diligence when choosing  a small firm.

They need to dig into the financials and consider a prospective broker dealer’s excess net capital and profitability. (They may be required to sign a non -disclosure agreement to get this information.)

What’s to discover? Smaller broker dealers that don’t have abundant resources to survive the current regulatory climate, especially in fighting arbitration claims before FINRA.

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