Registered Investment Advisor (RIA) vs. Stockbroker:

What Is a Registered Investment Advisor (RIA)?  (Gaddis Premier Wealth Advisors is registered as a Registered Investment Advisor with the SEC) See:

  • A registered investment advisor (RIA) is a firm that advises clients on securities investments and may manage their investment portfolios. RIAs are registered with either the U.S. Securities and Exchange Commission (SEC) or state securities administrators.  RIAs have fiduciary obligations to their clients, meaning that they have a fundamental duty to always and only provide investment advice that is in their clients’ best interests.
  • RIAs typically earn their income through management fees, calculated as a percentage of a client’s assets under management by the RIA.
  • Unlike broker-dealers, RIAs have a fiduciary duty to put the best interests of the client first.
  • RIAs must register with the SEC* if they manage more than $100 million in assets.

*Registration with the SEC does not constitute an endorsement by the SEC nor does it indicate the attention of a particular level of skill or ability

What is a stockbroker? (Most providers of investment products are FINRA registered stockbrokers or registered reps.) See:

  • A stockbroker is a financial professional who executes orders in the market on behalf of clients. A stockbroker may also be known as a registered representative (RR) or an investment advisor.
  • Most stockbrokers work for a brokerage firm and handle transactions for a number of individual and institutional customers. Stockbrokers are often paid on a commission basis although compensation methods vary by employer.