Start a FINRA Regulated Broker/Dealer

There has been a major shrinkage going on in the independent broker/dealer market for the past 6 years. Between 2008 and 2011, the number of privately owned broker/dealers dropped by 50%. Smaller broker/dealers are being acquired by the large dealers and insurance companies. New broker/dealers are opening at the slowest pace in recent history.

Private broker/dealers are attractive because they can focus on serving clients and not be forced to sell parent company products. Insurance owned broker/dealers often pressure the brokers to sell products that cater to the insurance industry. For those interested in establishing a broker/dealer that can offer products that cater to the needs of their clients without outside influence, there is a perfect opportunity that exists right now.

The broker/dealer industry is a heavily regulated industry. There are multiple licenses required. For someone starting from scratch, it could be many months or even years to pass all of the regulatory examinations required to open a broker/dealer. We offer a solution to that problem. We have all the necessary licenses to open a new broker/dealer right now. We are primarily interested in forming new broker/dealers for those interested in dealing institutionally. Examples would be professional money managers, real estate managers, private equity managers, hedge fund managers, venture capital managers and asset based lending.

There also is a unique opportunity for startups of female owned broker/dealers. There is a growing need for servicing of female entrepreneurs that prefer to deal with a female owned firm. We also offer this service to start a female owned broker/dealer.

Article: Are Privately Owned Broker-Dealers a Dying Breed?