What is a Broker/Dealer?

This may be the first question that springs to mind when you see this unusual term. A "broker/dealer" is a firm that oversees the activities of investment professionals to ensure that the client's best interests are being served. If you've ever purchased or sold any securities or similar type of investment through a registered investment professional, this person was affiliated with a broker/dealer.

Why Commonwealth?

While affiliating with a broker/dealer is required by federal regulation, the selection of the particular firm is totally up to the discretion of each registered financial professional. We believe our affiliation with Commonwealth says a lot about our firm and what makes us different.

Choices

Working with an independent broker/dealer means unlimited access to any investment suitable for achieving our client's goals. And all trades are cleared through National Financial Services Corporation, a wholly owned subsidiary of Fidelity Investments - another recognized industry leader.

Independence

Commonwealth was founded in 1979 as an independent broker/dealer by financial professionals who recognized an inherent dilemma in the traditional investment firm - how can a firm produce and promote its own "brand" of investment products and still ensure the advice of its brokers remains solely motivated by the client's interests?

Award Winning Service

Earning the Dow Jones Investment Advisor Magazine Broker/Dealer of the Year Award for 1991, 1994, 1996, 1997, 1998, 1999, 2001, and 2002 is just one source of proof for Commonwealth's commitment to quality service - the kind that enables financial professionals to spend the bulk of their time focused on clients. While the role of the broker/dealer has generally gone unnoticed by individual investors there are subtle, yet important differences among them that can offer you some insight when evaluating a financial professional.

Questions to Ask Any Broker

Who do you report to?

Only a financial professional working with an independent broker/dealer can truly say they report to their clients. Other financial professionals report to a sales manager who sets specific targets for sales to existing clients. Under this scenario, how will you ever know if recommendations provided to you are guided by your goals, or other factors?

Do you make more money when you sell a product developed by your firm?

It's not uncommon for a broker to receive additional financial incentives to push their firm's own products. In fact, certain investment firms will not even carry the competitors' products regardless of how good they are - rather they offer "suitable substitutes".