Do you know the difference between a Broker
and a Financial Advisor ?
 
Surprisingly, many people do not.  And many people are under the impression that there is no difference at all.  Of course, this isn't the case.  Among other things, brokers and financial advisers have different legal requirements and expectations to meet.  But there are also major differences in the types of obligations they have to their customers.
 
A broker is just what the name implies.  They are an agent that assists you in the purchase of something.  They are "brokering" a solution for you.  And typically they are compensated when you purchase the solution. 

 While there is absolutely nothing wrong with brokers their function is different than that of an Advisor.
 
A Financial Advisor is compensated for the advice they provide.  With this advice comes a fiduciary obligation to keep the customer's interests in mind ([fi-doo-shee-er-ee, -dyoo-] Law . a person to whom property or power is entrusted for the benefit of another)  .
 
While there is a great deal of recent discussion in both the government and the financial industry about fiduciary obligations, as of today, a broker is not a fiduciary. Of course, this does not mean a broker is not doing the right thing for their clients and most brokers will act in a fiduciary fashion, regardless of their legal obligation to do so.  So don't get the impression we are anti-broker.  Brokerage services remain a vital and important part of the financial landscape.