Success is measured by what the advisor likes: Includes chart

Look no further than Mississauga, Ont-based Edward Jones and Winnipeg-based Wellington West for proof.
The two “top five” ranking brokerages
couldn’t be more different. Wellington West chairman and co-CEO Charlie Spiring says his firm’s ideal broker has a minimum of four to five years of experience, a $50-million book and brings in around $500,000 in annual gross revenue.

The firm’s pitch to new advisors? “Have fun, make money, get equity,” says Spiring. “It’s a real family atmosphere. You get access to management, you get what you need and you get to run your own business.”

At Edward Jones, rookies and veterans alike are welcomed aboard — provided they run a “profitable, ethical business” aimed at the conservative investor, says Gary Reamey, head of Canadian operations.

As for who owns the clients, Spiring is a “big believer” that the brokers own their books, although it hasn’t exactly been an issue. “It’s ironic,” he says. “In our firm, [in which] you can walk out whenever you want, no one takes advantage of it. At the banks, they fight like hell if advisors want to leave and they lose more people.”

At Edward Jones, the firm owns the book of business.

There are other differences, as well. Edward Jones advisors should enjoy quiet office environments as each of the firm’s 530-odd advisors works in a one-person branch in a small town or city across the country, with no managers to override their decisions.

Still, Edward Jones brokers are arguably some of the happiest in the industry, judging by the comments gathered by Investment Executive researchers.

“I’ve been working in financial services for 30 years at six different firms, and Edward Jones is the best one out there,” says a contented broker on the West Coast.
“Edward Jones always puts its employees and customers first.”

Independence may be the tie that binds the top-rated brokerages. In second place this year is Vancouver-based Canaccord. The firm’s 430 brokers are paid a 50% payout, regardless of the product (proprietary or otherwise) and ticket size. Typical recruits bring in approximately $6 million in annual assets in the first couple of years, and are encouraged to do the type of business they feel is fit for their clients, whether it’s managed money or fixed-income or any other combination.

“In a nutshell, our pitch is: ‘Come and work for the largest independent, non-bank-owned brokerage firm in Canada’,” says vice president of private client services Bob Larose. “‘We have all the products and services for your clients, you have the freedom to do the type of business you want to do and we give you a competitive payout package. You can have your cake and eat it, too’.”

The firm is hitting the mark in technology this year, too, with top marks in Web tools for brokers, front- and back-office technology, as well as a first-place tie with National Bank Financial Ltd. for online account statements.

Toronto-based Raymond James moves up a notch this year — from a sixth-place position in 2004 — to place just behind Dundee and Edward Jones. The business model at both Raymond James and Dundee Securities Corp. (the investment dealer arm of Dundee Wealth) gives advisors the choice to work as independent agents or as traditional branch employees, depending on how they want to run their practice.

As independent agents at Raymond James, advisors earn a 85% payout and cover all their own expenses, including support staff and operating expenses. Advisors who choose to work at one of the firm’s 17 branch offices as employees earn an average payout of 52% (more or less, depending on their gross revenue) and have full access to technology, research and all other forms of branch support.