Start Your Own Broker-Dealer
By launching your own broker-dealer, you can continue to take advantage of commission-based revenue sources while employing the skills you developed as an affiliate or employee of another firm. At the same time, you have an opportunity to set your own agenda, retain more of the revenue you generate, and manage your business as you see fit. You will also be responsible for managing all of your new firm's operations, including staff, technology, and other operational needs, as well as legal and compliance requirements. Your success will depend on gathering assets, as well as attracting highly productive investment professionals who can help you build your business.
Establishing a Broker-Dealer
Establishing a broker-dealer is a complex process, requiring careful planning and close adherence to regulatory requirements. You will need to establish a clear business plan that clarifies your firm's proposed products, services, and operational processes. Next, you must review clearing providers and select partners who can provide access to the wide range of investment products needed to position your firm competitively. To meet Financial Industry Regulatory Authority (FINRA) standards, you will need to hire qualified, registered principals; establish your firm's board of directors; and obtain registrations for all owners with a stake in the operating broker-dealer. You must also secure adequate funding to meet regulatory capital requirements before you can petition FINRA for registration of your broker-dealer.
