Quote:
Originally Posted by Cecil Terwilliger
Umm isn’t that what I said? Bank or firm makes no difference. Bad advisors give bad advice.
I didn’t say that at all. I said all other things being equal, money talks. Small firms have no advantage.
You clearly have never dealt with a high level private banking outfit at the big five. They put most small firms to shame.
Smaller firms can excel at certain things that give them advantages over big investment firms or the big five. But if what you say is true then those small firms are automatically bad when they get big because profits? Not sure what conclusion you’re trying to draw here.
And? This is common in any industry and usually is because successful people don’t want their commissions going to their employer when they could keep it for themselves, so they open up their own shop. Usually it involves years of experience, capital and an established client base. Does that mean they were bad advisors with the banks but good advisors when they went private? Your reasoning makes no sense.
It appears your argument is that your small firm is better than big banks. Sure. But that means nothing in the bigger picture. Some of the worst advisors I’ve met were from the big five and others ran their own shop. You’re drawing conclusions not found in evidence.
Your suggestion small firms are less likely to do it for the money or are less likely to push more profitable products has no real supporting evidence.
With so much bias and misinformation it is no surprise people want to do it themselves and companies like questrade are making a killing. It’s an industry fraught with advisors who overvalue their services and less than honest business practices.
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What advantage is there to the bank? All I see coming from there is a slate of proprietary funds. Independence is so critical. It's not a knock against the bank advisors, but they have a limited slate of investment funds they can offer, and that's that. Most of them are MFDA advisors and they can't even discuss stocks or single securities.