Investment Advisors are often confused with Investment brokers , yet they both do related work with investments both have different identities and different work space in the Investment world. Investment is either done self by the Investor or through some Investment broker , where the Investment broker handles finance of the investor and takes all investment decision on behalf of the investor . Here, the ultimate power to make profits and losses lies in the hands of investment broker and he is sole decision maker in all aspects .Here , role of the investor is to take timebased reporting from the broker for his investments and takeway certain profits or losses relying on work of the broker .

Whereas an Investment advisor is only a advisor , his powers are limited to the extent of advising his client on new investment opportunities and guiding them about the changes and decisions to take on their current investment , here the investor self invest his money and takeaways all his gains and losses . He is only required to pay some fees or commission to the advisor for his analysis and research work on multiple investments .

The facts you read above is a short picture of how an Investment Advisor is different from an Investment Broker . To know more about the difference between both terms , read this entire post carefully.

Investment Advisor Vs Investment Broker  : Work , Powers and Remuneration

If you compare definition of an Investment Advisor and an Investment Broker you will find both of them to be similar some how , but in actual their way of working and their work policies are different. Investment Advisor can be a person or a corporate undertaking , which hires it own analysts and a team of experts to choose the right investment options for their clients. Where a broker is entitled to take investment funds from the investor or the entity to further invest them in better avenues and share the yeild the returns with the investing entity after deducting his commissions or remuneration . So if you compare both :

Work of Investment Advisor : Limited to Advising on Investment Matters and Looking on Multiple investment oppurtunities for the Investor .

Work of Investment Broker : An Investment broker in US is expected to takeaway the investment decisions on behalf of the investor and invest in right avenues and report only for the returns whether losses or profits occured.

If we look for the powers in hand , powers of an investment are always limited to the extent of his advice , this means he is only required to provide a advice after his analysis while profit or loss making depends on the investor and the advisor has nothing to do which checking what happened with the investor later . While for an Investment broker in US , it becomes necessary to be answerable to investor for investing in different sources and while reporting for returns or losses acquired in the investment .

Where remuneration is concerned , an Investment advisor in US is only expected to takeaway his service fee or a particular commission on his advice , if the investor gets into profit . If service fee is paid it is generally low , if commission is given , it is high as per the risk dependence of the advice on investment . Where as for remuneration , the broker is expected to bring returns on his own and takeaway his commission from the investment , if he is being payed a particular amount of commission , then it pays of the investor only after deducting his commission when their is a profit , in case of losess no commision has to be paid.

Investment Advisor Vs Investment Broker  : Know who to Appoint ?

An investment advisor is very easy to find as you can check from multiple sources like search engines , from recomendations of your friends or relatives or from your corporate relations about a good investment advisor , where on the other hand you might not be able to decide for a perfect investment broker because no one is a perfect one , their might be left uncertainity about the broker and their can be situations that he might bring losses in some situations.

Investment Advisor Vs Investment Broker  : Investment Advisory in US.

It solely depends on your Investment need and the investment amount you want to make which could decide whether to hire an Investment advisor in US or an Investment broker . If you are an individual and looking for personalised investment solutions ,then you can take help of Investment advisor where your budget shall be limited and you will be able to invest much better with the help of an Investment advisor .

Hiring of an Investment Broker in US can be and should be done by corporate entities who are required to make big investments and required dedicated professionals to handle their investment needs. An investment broker gets highly paid through investment agencies and corporate entities because his self specialisation works more than advising the corporate professionals in an entity.

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