The purpose of this research is to provide readers with a comprehensive understanding of wirehouses, other national brokerage firms, & regional brokerage firms, a market that has been both rapidly evolving and consolidating. Tiburon has a separate research topic that addresses the investment banking businesses (e.g., corporate finance; mergers & acquisitions advice; institutional sales & trading) of these firms. This research specifically focuses on the private client businesses of these firms. Tiburon also has separate research topics that address independent broker/dealers and discount & online brokerage firms. This research is part of Tiburon's broader coverage of wealth management firms.
This research addresses the historical phases of full-service brokerage firms, including:
- Emergence & Growth Phase
- Discount & Online Brokerage Firms Competition Phase
- Independent Advisors Competition Phase
This research defines the key market segments of full-service brokerage firms, including:
- Wirehouses
- Other National Brokerage Firms
- Regional Brokerage Firms
This research outlines the competitive factors amongst, and key service providers to, full-service brokerage firms, including:
- Financial Advisor Recruiting Bonuses, Fees, & Payouts
- Client Commissions & Fees
- Open-End Mutual Fund Companies, Exchange Traded Fund (ETF) Companies, Separately Managed Account Companies, & Other Investment Product Companies
- Technology Companies & Turnkey Asset Management Programs (TAMPs)
This research makes several future predictions for full-service brokerage firms, including:
- Modest Financial Advisor Recruiting Market with a Steady (But Relatively Small) Flow Out of Break-Away Brokers & Continued Decline of Financial Advisor Recruiting Bonuses and Payouts with More Fees & Higher Bars
- Slow Growth in Number of Financial Advisors and Moderate Growth in Assets Under Management & Administration and Net New Assets Under Management & Administration
- Continued Dominance of Wirehouses, with Other National Brokerage Firms Gaining Some Share
- Lower Client Commissions & Fees
- Increasing Dominance of Comprehensive Financial Planning, Managed Account Programs, Exchange Traded Funds (ETFs), & Alternative Investments
- Increasing Utilization of Third-Party Technology
- Limited Number of Full-Service Brokerage Firms Venture Capital Opportunities
- Modest Number of Full-Service Brokerage Firms Mergers & Acquisitions, with Other National Brokerage Firms Acquiring Regional Brokerage Firms
- Limited Number of Full-Service Brokerage Firms Initial Public Offerings (IPOs)