U.S. Broker/Dealer Marketplace 2025
The Challenging Pursuit of Organic Growth
Benchmark and Grow Marketshare in the B/D channel
- Review trends in advisor recruitment and development, including how firms have modified their approach in response to the COVID-19 pandemic
- Discover the most compelling distribution opportunities for asset managers
- Understand the impact that Regulation Best Interest (Reg BI) is having on the industry, including what firms are doing to comply, and how firms’ business models are evolving in response
- Explore how COVID-19 is affecting firms’ and advisors’ use of technology and how advisors are adapting their approach to client engagement
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Summary
This report provides B/Ds and custodians a method to benchmark against their competitors and insights into how they are reacting to key opportunities. The report also helps asset managers and other third parties identify which are the fastest-growing B/Ds are and what the growth drivers are. Third parties will gain greater insight into their existing B/D partnerships, while also discovering new partnering opportunities.
A Note From the Author
Independent Broker/Dealers Lead Channel Growth
Michael Rose, CFP, MST
Director
Bio →
Michael Rose, CFP, MST
Director
Michael is a Director and co-head of Cerulli’s Wealth Management practice where he leads a team of analysts dedicated to developing data and insights to support Cerulli’s published research and consulting business. Michael specializes in research and consulting related to the delivery of wealth management services by broker/dealers in addition to wealth management technology utilized across all channels and he is the lead author of Cerulli’s U.S. Broker/Dealer Marketplace and State of U.S. Wealth Management Technology reports. Michael regularly engages with key constituents across the wealth management ecosystem, including financial advisors, wealth management firms, asset management firms, and technology providers, in order to measure key market characteristics and to advise executives.
Prior to joining Cerulli, Michael spent eight years working as a financial advisor, providing comprehensive wealth management services to high-net-worth individuals and families. Prior to his role as a financial advisor, Michael served as a market researcher and consultant for IDC, where he was responsible for researching trends within the infrastructure software marketplace and advising senior business executives on technology and product strategy.
Full biography here.
The independent broker/dealer (IBD) channel has seen the greatest amount of consolidation over the last three years, significantly increasing the scale and capabilities of the largest IBD firms. Year over year, the channel led growth in advisor-managed assets, achieving growth of greater than 21%— ahead of captive B/Ds and registered investment advisors (RIAs).
Driven by industry consolidation, the IBD channel now controls nearly one-fifth of all financial advisor headcount and 16% of total industry assets. Assets and advisors have increasingly become concentrated in the hands of the very largest IBDs. The five largest B/D firms control more than 80% of B/D channel assets.
Cerulli’s research indicates that advisors are drawn to independent affiliation models (including IBDs and RIAs) for higher payout (91%), the ability to build financial value in an independent business (75%), and greater autonomy (73%). If mid-tier IBDs remain nimble and focused on their unique value propositions, and make investments to strengthen them, Cerulli believes that there remains a place in the marketplace for boutique mid-sized firms.
Continue to explore this topic and more with our latest research, U.S. Broker/Dealer Marketplace 2025. See our projections for where the market is heading, as well as the changes B/Ds are making to retain and attract top advisor talent amidst a competitive landscape.
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