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Our thoughts, ideas, & opinions about the latest developments in the financial industry & how they impact us all.
The Difference Between Fiduciaries and Brokers
Posted by: SHARON PRYSE
Posted on: May 3, 2010
With the ongoing Goldman Sachs hearings, I would like to take this opportunity to differentiate our services as a Fiduciary versus Goldman as broker who is selling a product. We do not sell the products; we invest on behalf of our customers and charge a Fiduciary fee. We have no form of compensation other than the fees we charge our accounts. The more an account is worth, the more we make. If an account goes down in value, we make less money. We are pleased to acknowledge that we are a Fiduciary. Goldman Sachs and other brokers sell products. They are compensated by commissions on the transaction and other fees. The person on each side of the transaction is supposed to be a willing buyer and a willing seller. Brokers most often make certain that they do NOT have a Fiduciary responsibility. We are pleased to recognize our Fiduciary responsibility and feel like our long-term interests are best served by serving our customers’ interests first and foremost.