What is an IBD in the context of a Registered Investment Advisor (“RIA”)?

Definition: IBD is an acronym for Independent Broker-Dealer.

When used in an RIA context: “The financial advisor is affiliate with an IBD where they provide investment solutions to their clients, and are compensated for the transaction with a commission.”

See also: Episode 62, Episode 127, Broker-Dealer, Independent Broker-Dealer