Broker-Dealer Satisfaction Survey Reveals Top 3 Firms

Steven Glasgow

Familiar names once again top J.D. Power’s list of broker-dealers as ranked by financial advisors.

According to the latest U.S. Financial Advisor Satisfaction Study, Edward Jones and Commonwealth once again lead other firms in their respective categories. 

Among employee advisors, Edward Jones ranks highest in overall satisfaction with a score of 890. Raymond James & Associates (864) ranks second and Stifel (857) ranks third. It also topped a similar ranking for overall customer satisfaction earlier this year.

For independent advisors, Commonwealth ranks highest in overall satisfaction with a score of 936. Raymond James Financial Services (853) ranks second and Cambridge (842) rounds out the top three.

The annual study is based on responses from more than 3,000 employee and independent financial advisors and is based on six key factors: compensation; leadership and culture; operational support; products and marketing; professional development; and technology.

Not all advisors feeling the love

The study shows that while overall financial advisor satisfaction has been boosted by booming financial markets, not all advisors are feeling “the warm glow of support” from their firms.   

Despite payout rates and branding campaigns that suggest higher levels of support for advisors, wirehouse firms have fallen short of advisor expectations during the pandemic, with the exception of Morgan Stanley which significantly improved from 2020.

For the rest, the results are bleaker: 

The most significant pain points are technology and operations support among dissatisfied advisors with just 35% saying their firm’s technology offerings have improved in the past year and only 12% having had problem-free experiences with their firm during the past year.

Dissatisfied advisors more likely to switch firms

Tracking firm-level advisor satisfaction scores from 2018 through 2021, J.D. Power found that 18% of advisors working for firms with the lowest overall advisor satisfaction scores end up switching firms during that period. 

In comparison, just 5% switched among the firms with the highest overall advisor satisfaction scores.  

“Advisor satisfaction is directly linked to retention and brand advocacy, so firms that want to get the most out of their advisors need to invest in providing them with the best tools and support to do their jobs effectively under all circumstances,” said Mike Foy, senior director of wealth and lending intelligence at J.D. Power. 

“This year has been especially challenging, and this study identifies some firms that clearly did a better job than others in meeting those challenges.”

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