The Primary Difference between an RIA and a Stock Broker

The primary difference between and RIA and a stock broker is how we are compensated. RIAs are compensated through a fee, based on the assets in the account and stock brokers are compensated through commissions, based on the products they sell.

An investment advisor must work in the client’s best interest and disclose any conflicts of interest. A stock broker only has to determine if the investment is suitable for the client.

What Our Clients Want

Our clients want a relationship with a financial advisor where they know they are both working toward the same goal. Lowell Road Asset Management is a fee-based Registered Investment Advisory (RIA) firm and our objective is to help you achieve your goals.

Personalized, Focused Financial Advice

Our clients have chosen to work with us for a number of very important reasons

They want a financial advisor who:

Puts their interests first
Understands their specific situation
Offers straightforward advice that reflects their long-term goals
Recommends investment solutions that best fit their unique needs
Uses a fee-based structure that encourages unbiased advice

What We as an RIA Deliver

An independent relationship for the long term

Whether we are helping you plan for retirement or save for your children’s education, we focus on your best interests:

As an RIA, it is our fiduciary duty to act in your best interests – we are legally bound to put our clients’ interests first
We will take time to understand you and your specific financial situation
We will strive to ensure your needs are being met through a personal relationship and committed pursuit of your investment goals
We will make portfolio recommendations consistent with your objectives
And, our compensation for asset management is aligned with your goals
We charge for our services based on a percentage of your assets managed, so it’s important to us that your investments continue to grow

How we differ from Registered Representatives

	Registered Investment Advisor	Registered Representative
Primary Function	Investment advice for my overall financial circumstances	Facilitate securities purchase and sale transactions for their clients
Compensation	Charge a percentage fee based on the amount of assets in the account	Usually commission-based
Responsibility to Client	When providing investment advice, investment advisors are fiduciaries and are legally bound to work in their clients' best interests and they must disclose conflicts of interest	When making a recommendation registered representatives must determine that the investment is suitable for the client
Regulatory	RIAs are overseen by the Securities and Exchange Commission (SEC) or state regulatory agencies	Financial Industry Regulatory Authority (FINRA), the SEC and state regulatory agencies

Which Option is Right for You?

Questions you should ask yourself

What am I looking for – assistance with buying/selling individual securities, investment advice, or both?
How do I want to pay my financial professional? Fees? Commissions?
Do I want to take a longer-term, holistic approach to the management of my investments or make it more transaction oriented?
How important is it that my financial professional have a fiduciary responsibility to put my interests first?
60% of individuals surveyed said they are more comfortable receiving financial advice from someone who is paid a flat fee or percentage of assets versus 23% for a person who is paid on commission for products they sell.

Lowell Road Asset Management

To learn more about the advantages we have over broker-dealers please contact us at 516-767-1099.