Difference Between Advisory and Brokerage

Advisory services are typically ongoing and may include holistic financial planning, paid for through an ongoing fee calculated as a percentage of the assets in your advisory account. Brokerage services involve transactions such as securities trades made in your brokerage account, and are paid for through a commission on trades.

When your financial advisor provides advisory services, the Advisor Firm is responsible for the investment advice, which includes the selection of securities and/or investment strategies and the ongoing monitoring of your advisory account based on your financial needs and objectives. When your financial advisor provides brokerage services, that transaction is processed through your brokerage account at LPL Financial.