Why No One Calls Themselves A Stockbroker Anymore

Among CFP[® professionals], 59% are able to sell commissioned products, according to CFP Board figures. Those CFP[® professionals] are subject to the board’s code of ethics for those who hold the certificate — but they work for brokerages, where they are held to Reg BI’s less-rigorous standard.

“Those CFP® professionals are committed to acting as a fiduciary for their clients, at all times, when providing financial advice which includes brokerage services,” says CFP Board CEO Kevin R. Keller.

It’s difficult to pinpoint when exactly “stockbroker” started declining in popularity, but the rise of online brokerages was a major driving factor. As do-it-yourself platforms gained traction over the years, many advisors started to downplay the stock-trading part of their roles to emphasize other services like holistic planning and goals-based analysis.

Financial Planning
Chana Schoenberger
April 22, 2021