What is an independent broker/dealer in the context of a Registered Investment Advisor (“RIA”)?

Definition: A type of broker-dealer where the firm’s financial advisors (“registered representatives”) are affiliated with the firm on a 1099 / independent contractor basis.

When used in an RIA context: “The financial advisor works for an independent broker-dealer where they provide investment solutions to their clients, and are compensated for the transaction with a commission.”

See also: Episode 62, Episode 127, Episode 144, broker/dealer, BD, Registered Representative, 1099