Broker Check

3 Keys to Choosing an OSJ That’s Right for You and Your Clients

February 20, 2020

3 Keys to Choosing an OSJ That’s Right for You and Your Clients

Choosing the right OSJ to align with when looking for a new broker-dealer is vitally important to your practice’s long-term growth and satisfaction. But with so many options available, how can you decide which will ultimately be the best choice for your practice and your clients?

While this decision is sure to involve many factors, and every advisor’s needs are different, you can start the evaluation process by considering three key aspects of the OSJs you’re looking at.

Focus on Support

Too often, advisors only look at the payout scale an OSJ provides and the fees it charges. Obviously, these are important considerations. But it could prove to be costly over the long haul to jump into a decision based solely on what appears to be generous payout and fees.

Instead, evaluate the support an OSJ provides in key areas, such as marketing, administrative assistance and coaching, and then determine how that support will help you achieve your long-term goals.  

Find Services Important to You

Times have changed. A successful OSJ is no longer just a FINRA-required compliance supervisor that oversees opening new accounts and approving trades.

The most successful OSJs now offer a wide array of advisor-focused assistance, such as business continuation plans, marketing materials, practice management ideas and remote assistant services.

When choosing an OSJ, start by making a list of the services that are most important to you and your clients and then compare those that are offered by your top choices. To help compare OSJs side-by-side, develop a simple scorecard that clearly shows what each has to offer.

Look for Shared Philosophies

When comparing OSJs, look for one with a sound compliance process and the same values and business philosophy as yours as well as a product mix compatible with your business model.

When considering a new OSJ, it’s easy to get swayed by a high payout, but before you jump into a decision, take your time to ensure you’ll have access to expert, personalized services and support that complement your business and growth plans. A more careful, deliberate approach to your decision will likely result in greater rewards for you and your clients over the long run.