The independent broker-dealer channel has emerged as a leading force in the US wealth management industry, outpacing other channels in advisor-managed asset growth and reshaping the competitive landscape through a wave of consolidation, according to new research from Cerulli Associates.
Over the past three years, the independent broker-dealer (IBD) channel has experienced the highest level of consolidation among all retail financial advisor channels. This trend has significantly increased the scale and capabilities of the largest IBD firms, which now control nearly one-fifth of all financial advisor headcount and 16% of total industry assets.
Analyzing data from across the industry, Cerulli found that year over year, the IBD channel posted growth of 21.5% in advisor-managed assets, surpassing both captive broker/dealers (13.4%) and RIAs (16.4%). That marks a shift from the 10-year picture, where RIAs had the largest CAGR (11.4%) ahead of IBDs (8%) and captive BDs (7.1%).
“Assets and advisors have increasingly become concentrated in the hands of the very largest IBDs,” Michael Rose, director at Cerulli Associates said in a statement.
Painting a deeply lopsided picture, Rose said the 25 largest broker-dealer firms now control more than 80% of all assets in the channel.
Cerulli said the total number of IBDs has declined by more than one-third over the past decade, falling from 124 at the end of 2014 to 79 at the end of 2024. This reduction is largely attributed to mergers, acquisitions, and the consolidation of multiple subsidiary broker/dealers within parent firms.
Among the most notable acquisitions, the report pointed to LPL's acquisition of Commonwealth this year, and its deal for Atria in 2023. That same year, Advisor Group rebranded to Osaic, kicking off the consolidation of its subsidiary broker/dealers, after which it scooped up Lincoln Financial Network.
Meanwhile, Cetera expanded its reach with the acquisitions of Securian Financial Services and Avantax. On the wirehouse front, JPMorgan Chase scooped up First Republic in an opportunistic takeover amid the fallout of the 2023 regional banking crisis.
As it stands today, Rose said mid-tier IBDs may face challenges in matching the platform capabilities and resources offered by the largest firms, particularly as larger players invest heavily in technology and home-office support. Still, Cerulli notes that there remains a place for mid-level IBDs that remain nimble and focused on their unique value propositions.
“Many IBD advisors prefer smaller, more boutique cultures, and the ability to have a direct line to senior decision makers,” Rose said.
Cerulli’s research highlights that advisors continue to prefer independent affiliation models, including IBDs and RIAs, citing higher payout (91%), the ability to build financial value in an independent business (75%), and greater autonomy (73%) as top factors.
Among advisors who switched from one captive broker-dealer to another in the past three years, the common deciding factors were technology (54%), the quality of back-office support (52%), and the size or structure of compensation (50%).
Thrivent Investment Management Inc. in May fired Nicholas Hale, according to his BrokerCheck profile.
About 70 bank and credit union advisors move to the Raymond James platform, while a $480M New Jersey team goes independent with LPL
The best tax plan asks not only how much a client could save, but what they would have to give up to save it.
A 20-year financial services veteran brings values-driven planning expertise to the St. Louis-based RIA.
New research shows a 71% plunge in actions in fiscal year 2026, with total settlements the lowest since the database began.
Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.
Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.
