Should You Be Independent?

Establishing Your Own Office

If you are currently employed with a wirehouse or regional brokerage firm, making the transition to independence and opening your own office presents some challenges with the opportunity. You have to make decisions and manage the daily activity. Registered brokers who are or have been office managers understand many of the issues. At Century Securities, we work to make the activity manageable for the investment broker. We have experience in establishing offices and we can call upon the resources of Century Securities and Stifel Nicolaus to help effect a smooth transition.

Getting Started - Century Securities can help start the process. Once a broker makes a decision to move to Century, we can assist in the development of a plan and begin to initiate many of the activities. Certainly, anything that can be done to reduce or eliminate risk of transition is going to increase the potential for great success.

Creating an Identity - Some brokers want to build a specific identity in their community. A business name unique to the broker can enhance this branding process. For those brokers for which this is an important consideration, Century enables the broker to create and utilize his/her own business name. Thus, the broker can choose to utilize the Century Securities name or another business name (within regulatory guidelines). This kind of flexibility is not allowed at many firms.

Account Transfers - Those clients who wish to follow their trusted investment professional to a new broker/dealer must complete certain documents. This process demands a significant effort by a broker acting alone. Century supports this process with experienced staff, allowing the new affiliated broker to devote more time to client and prospect communication. We also will support initial client mailings, if warranted.

Leased Space - Perhaps one of the most significant aspects of independence is determining whether to lease office space or utilize an office in the broker's home. We are very willing to help those brokers seeking advice on this topic.

Support Staff - Depending on the level and complexity of business activity, an independent broker may choose to employ support staff. This may require a search and interview process. Related issues include payroll taxes, employment benefits, and whether staff should be part-time or full-time.

Information Systems (Quotes) - We have found that every broker has different systems needs. Most large brokerage houses have a "one size fits all" approach. We can help brokers to install a traditional quote system used by Stifel Nicolaus. We also can help our brokers to analyze needs and create a system which fits his or her business.

Health Insurance - In most cases, independent brokers seek to replace health insurance benefits received by a previous employer. While COBRA enables employees to carry their existing coverage for 18 months after termination.

Registration/Licenses - We are experts in the registration process and we can help to speed the registration process along. Our objective is to get our affiliated brokers registered as quickly as possible so that they can begin doing business. Affiliated brokers must register with the FINRA and each state in which they do business. A broker should expect to pay approximately $150 or less to the FINRA and an average of $75 for each state where he or she has clients. Century does not mark up registration fees as many firms do. We work to keep costs low.

Should You Be Independent?

Many of today's successful investment professionals are considering a move to independence. If you would like to investigate the prospects of becoming independent, we can help. Complete and return the survey below and we will create and send you an estimated first-year P&L statement of your business. (If you are considering working with other brokers in a shared office, call us and we will create the P&L for your branch.)