Jul 2
Trendspotter: Where Have All the Brokers Gone? by Jeff Berman - ThinkAdvisor
What You Need to Know
- The growing popularity of Robinhood and other self-directed trading platforms is a key driver of the trend.
- As veteran registered reps retire, not nearly enough young people are entering the channel to replace them.
- The trend is only expected to continue.
The Trend
The total number of broker-dealers registered with the Financial Industry Regulatory Authority has fallen every year since at least 2011, while the number of registered representatives has fallen each year since 2016, according to FINRA.
The number of BDs fell 2.3% — or 82 firms — to 3,435 in 2020 from 3,517 in 2019, according to FINRA’s 2021 industry snapshot. Meanwhile, the number of registered reps dropped 1.1% — or 7,125 individuals — to 617,549 registered reps in 2020 vs. 624,674 in 2019, according to FINRA.
