During its third quarter of the last fiscal year, 120 brokers joined RIA TD Ameritrade, up 50% from a year earlier.
For all of last year, TD Ameritrade attracted 348 breakaway brokers, a trend, which managing director of sales Pete Dorsey expects to continue, “because clients are demanding it”. (As reported to Matt Ackermann for OnWallStreet last week.)
According to the firms institutional Advisory Survey, RIA’s report 57% of their new assets come from traditional full-commission firms.
Because of this spiraling trend beginning in 2008, the wirehouses have tried to adjust, offering attractive retention packages…but now, a lot of these deals are expiring and brokers are starting to look at other options and new alternatives.
The trend of breakaway brokers opting to go with an established RIA firm holds steady as many brokers are not interested in the operational side of running a practice and are looking for an established back office system with support.