Fiduciary Advisor vs. Broker/Financial Advisor

If you’ve recently started planning for retirement, or you’re looking to invest some of your money to help you create a more financially secure future for yourself and Family, there’s a good chance that you’ve heard the terms “fiduciary” and “financial advisor” tossed around in conversation. Many people are under the impression that financial advisors and fiduciaries are interchangeable, but that is not the case. Financial advisors and fiduciaries play different roles in your finances, and it’s important to pick the right one based on your needs. With that in mind, you may not understand the difference between the two, which is why we’ve put together some information to give you a better idea of the roles and regulations required of each job.

At Brokerage Specialists, our team of fiduciary financial advisors are proud to offer unbiased, high-quality advice to residents throughout the Grand Island area. We have years of experience providing financial advice, whether you’re interested in learning more about preparing for retirement, you want a portfolio analysis, or you need assistance with your investments. Our goal is to help you set yourself up for financial success in the future, so if you’re in need of advice from experts you can trust, look no further than Brokerage Specialists in Grand Island! Explore our website to learn more, and give us a call to schedule an appointment.


What Is a Fiduciary?

A fiduciary is a type of financial advisor who is licensed with the United States Securities and Exchange Commission (SEC) or state regulators, but with a distinct difference to only offer advice and management of investments for a fee or an hourly rate. Fiduciaries are required by law to put their clients’ interests above their own, as opposed to trying to get their clients to invest money into certain investments as a way to earn commissions. For this reason, it’s recommended that you seek out a fiduciary financial advisor if you are looking for someone who can effectively manage your money and give you unbiased advice about your investments. Please go to to see if your advisor is licensed to sell securities, if he has a series 6, 7, or 63 license these licenses allow the advisor to collect commissions on the sale of the security. We are Brokerage Specialists believe this is a SERIOUS CONFLICT OF INTEREST.


What Is a Financial Advisor?

As you can imagine, a financial advisor or Broker, who is not a fiduciary is someone who is licensed by the SEC or state regulators to collect fees or collect commissions on the sale of securities. These financial advisors often receive commissions on the investments they sell, and as a result, their financial advice may not be completely unbiased. They sell investments that are appropriate for their clients or suitable to their needs today, but they use financial disclosures to advise you of that that are collecting commissions.

If you are not quite sure what you need or want when it comes to investing your money, then it may be best to seek help from a fiduciary financial advisor as opposed to a broker/financial advisor.


How Are the Roles Different?

As mentioned above, the biggest difference between a fiduciary and a financial advisor is the standards they are held to when assisting clients. Financial advisors may be instructed to sell a certain number of investments, and while these investments must be suitable for the client, fiduciaries are held to a higher standard of care that requires them to put their clients' needs first. Aside from whether or not their put the needs of the client ahead of their own, here are a few more ways you can distinguish a fiduciary and a financial advisor:

At Brokerage Specialists, our team consists of fiduciary financial advisors, meaning you will never have to wonder whether we are advising you for the purposes of earning more commission or advising you based on your own interests. If you have questions about our policies or you’re interested in seeking help from one of our professionals, give us a call or reach out using our online contact form today.

What to Look for When You Hire?

If you think that fiduciary financial advisor will be the right fit for you and your needs, the first thing you need to do is find one. Unfortunately, asking the question of whether or not a financial advisor is a fiduciary falls on the shoulders of the client, unless the financial advisor specifically advertises being a fiduciary. If you’re still unsure whether or not your financial advisor is a fiduciary, consider working with a certified financial planner. Certified financial planners have certifications that require fiduciary duty, which ensures that they have the proper licensing, education, and experience to put your needs first and advise you on your accounts accordingly.

Want to Learn More?

Understanding the difference between a financial advisor and a fiduciary is only the beginning, and if you’re still feeling confused, our team at Brokerage Specialists in Grand Island can help! Our team of fiduciary financial advisors always puts your needs first, and our goal is to help you enjoy retirement with secure and stable finances. In addition to retirement planning, we also offer portfolio analysis, 401(K) assessments, and more. Explore our website to learn more, and when you’re ready, reach out to our team to schedule an appointment today!

We look forward to working with you.