Differences Between Advisory and Brokerage Relationships: 

Advisory Business:

1. Fiduciary Duty: Advisors are held to a fiduciary standard, which requires them to act in the best interests of their clients at all times.
   
2. Fee Structure: Advisory services typically charge fees based on a percentage of assets under management (AUM) or a flat fee, rather than earning commissions on transactions. See Advisory Fee Tiers
3. Services Offered: Advisory services often include comprehensive financial planning, investment management, and holistic advice tailored to the client's entire financial picture.
4. Regulation: Advisors are generally registered with the SEC or state regulators and must adhere to stringent regulatory standards.
5. Client Relationship: The relationship is typically more ongoing and personalized, with a focus on long-term financial goals.

Brokerage Business:

1. Standard of Care: Brokers are held to a suitability standard, meaning their recommendations must be suitable based on the client’s financial situation and objectives, but not necessarily in their best interest.
2. Fee Structure: Brokers earn commissions on each transaction (buying or selling securities) they execute for their clients.
3. Services Offered: Brokerage services primarily focus on executing trades and providing investment products. While financial planning services may be offered, they are generally not as comprehensive.
4. Regulation: Brokers are regulated by FINRA and must comply with specific industry rules and standards.
5. Client Relationship: The relationship can be more transactional and product-focused, with less emphasis on long-term planning.

*discounted advisory fee may apply based on assets under management