Financial Advisors or Broker Advisors deliver personalized investment solutions. Likewise, this person executes orders on the stock market and sells financial products (e.g. stocks, treasury bills, mutual funds, annuities, and variable life insurance), and manages other financial activities on behalf of clients in exchange of a commission. Financial Advisors sometimes offer counselling and consulting services. However, these services are mainly focused on a transaction-based relationship, since the Financial Advisor stands as an intermediary between a buyer and a seller and must set transactions that are suitable for both parties.
This position is easily confused with the one of Investment Advisor, whose role is to offer a more comprehensive vision on a variety of financial topics, including investment and guidance. Investment Advisors work in conjunction with their clients to make investments and allocation decisions, providing them unbiased and unrestricted advice.
Financial Advisors are commonly hired by investment companies, stock brokerage firms, stock and commodity exchanges, building societies, financial planning firms, independent financial advice companies, insurance companies, and a number of retailers who offer financial services.
Here’s a non-exhaustive list of common tasks Financial Advisors are required to complete.
- Providing a professional level of financial-based advisory and transactional services to customers:
- Identifying clients’ needs and goals and assessing their current and future investment actions;
- buying and selling financial products such as stocks, commodity futures, foreign currencies, among others, on behalf of investment dealers and other clients;
- developing investment and trading strategies while ensuring their clients’ best interests are being served;
- recommending the best-suited products to their customers;
- promoting financial products and services; and
- providing education, counselling, and consultation related to investments and finances.
- Maintaining detailed records on the transactions executed and decisions made:
- Following up on customers’ investment portfolios to ensure that every transaction is being held pursuant to industry’s regulations.
- Establishing business relationships with clients:
- Maintaining a record of potential customers and transactions.
- Searching for opportunities to access and build new brokerage markets and products:
- Contributing to ongoing professional business development activities:
- Cooperating with the company’s endeavor of achieving gross revenue and net operating income objectives; and
- working in conjunction with colleagues to gather market information, statistics, and trends.
- Contacting clients and setting up meetings.
- Reviewing customers’ financial status, as well as their current and future aims.
- Designing financial strategies.
- Buying and selling financial products on behalf of their clients.
- Selling securities by making bids and offers.
- Researching the marketplace and monitoring its conditions.
- Keeping detailed computerized records.
The average Financial Advisor salary is $58,506 per year or $30 per hour. This is around 1.8 times more than the Median wage of the country. Entry level positions start at $41,000 while most experienced workers make up to $82,000. These results are based on 45 salaries extracted from job descriptions.