Form CRS: Brokers and Investment Advisers – Which is Right For Me?

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The services you receive will depend on your agreement with the broker or adviser.

Brokers provide services that are generally more transactional and time-specific. A typical broker:

  • accepts and carries out orders to buy and sell investments;
  • gives recommendations to buy, sell, or hold a specific investment; and
  • may agree to periodically monitor investments in some accounts.

Advisers provide services that are generally more focused on your portfolio or account over time. A typical adviser:

  • gives ongoing advice about your investments – whether to buy, sell, or hold a specific investment;
  • provides ongoing monitoring of how your investments are doing; and
  • manages some accounts (called discretionary accounts) by making trades for you.

For more information, check out this video from SEC Chairman Jay Clayton.

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