This week the RIA industry commission war went full throttle.  While the zero-commission environment was set in motion by Vanguard Group in June of this year, the past several days saw Charles Schwab & Co., TD Ameritrade, E*Trade, and now Fidelity Investments is following suit.

Today, 3 of the 4 largest custodians to independent advisors (Fidelity, Schwab, TD Ameritrade) offer $0 cost commissions for Equity and ETF trades. Pershing has not announced commission changes yet, but the competitive market pressures may well force their hand to do the same soon.

Why is this a big deal?

A zero-commission environment and its appeal to client households will drive more advisors from wirehouse and independent broker-dealer firms to take a more serious look at the RIA space. Count on it.

When they do, they will find what thousands have prior: freedom, flexibility, and choice trumps captivity. Simply put, RIA empowers YOU to deliver the highest state of the advisor-client relationship (fiduciary), best-in-breed technology YOU decide to put in force, and YOUR choice of sophisticated services to provide.

Whether you dream of going-it-alone by the launch of your own RIA or choose to join one of the market-leading or emerging independent platforms as a support partner, the time has never been better to conduct due diligence on the RIA marketplace.

The zero-commission environment may very well be the enticing catalyst you (and your clients) needed to reach escape velocity.

I will close with this… in my 25-year career assisting advisors’ transitions to the RIA model, I have never (not even once) had an advisor regret that decision. In fact, they all say, “I should have done this sooner.”

You can thank the new zero-commission new world of RIAs for giving you this opportunity.

Just Do It.


Mike Papedis

The original article can be found HERE.