Investment Advisor Representative Vs. Registered Representative

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In the world of investing, there are two types of financial representatives, investment advisor representative and registered representative. Both have their unique roles and qualifications for the clients that they serve.

Function

  • An investment advisor representative is someone who works for a registered investment advisor. This is a firm that manages clients’ accounts, gives advice on investments, promotes itself as providing investment advice to the public and receives a fee for that advice.

Qualifications

  • To qualify for as a registered investment advisor, all candidates must pass the Series 65 or Series 66 examinations. There are different training and qualification requirements at registered investment advisory firms.

Fees

  • Registered investment advisors make their money based on the fees they charge you for advice. This is usually calculated as percentage of the total assets under management for a certain amount of time such as a year.

Job Description

  • A registered representative is a salesman who works for a broker dealer that buys and sells various products to the investing public, such as mutual funds, stocks and bonds.

Commissions

  • Registered representatives must pass the Series 7 and Series 63 examination. They charge a commission every time a customer buys or sells something with them.

References

  • Photo Credit Comstock/Comstock/Getty Images
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