The Complete List of Types of Brokerage Firms

Types of Brokerage Firms and How They Impact Investors

Not all brokerage firms operate the same way. The size, culture, and structure of a firm influences how they handle client disputes and what kind of risks investors face. Below is a breakdown of the primary categories of brokerage firms, along with comprehensive lists of examples.

Wirehouses

Wirehouses are large, global institutions with thousands of advisors and clients. Their scale means they have extensive compliance departments, but also layers of bureaucracy that can delay responses to investor complaints. These firms often serve high-net-worth clients but also have a history of aggressive sales practices that can lead to unsuitable investment recommendations.

Examples of major wirehouses include:

• Merrill Lynch (Bank of America)
• Morgan Stanley
• UBS Financial Services
• Wells Fargo Advisors
• JPMorgan Chase Wealth Management
• Goldman Sachs (Private Wealth Management division)
• Citi Personal Wealth Management

Investors at wirehouses benefit from deep resources but may encounter conflicts of interest, such as advisors being incentivized to push firm-preferred products.

Independent Broker-Dealers

Independent broker-dealers give financial advisors more freedom to run their businesses, but that autonomy often shifts more responsibility onto the advisor and away from the firm. While these firms provide back-office support, investors may find that oversight is lighter compared to larger wirehouses.

Examples of independent broker-dealers include:

• LPL Financial
• Raymond James Financial
• Commonwealth Financial Network
• Ameriprise Financial Services
• Advisor Group (now Osaic, encompassing firms like SagePoint Financial, FSC Securities, and Royal Alliance)
• Cambridge Investment Research
• Cetera Financial Group
• Securities America (now part of Osaic)

For investors, the independent model can be risky if the advisor is not properly supervised, making it easier for unsuitable recommendations or excessive fees to go unchecked.

Regional Brokerage Firms

Regional firms focus on specific geographic areas, often adopting a community-based approach. They can feel more personal, with closer access to senior management, but they generally lack the compliance infrastructure of larger firms.

Examples of regional firms include:

• Stifel Financial Corp.
• Edward Jones
• D.A. Davidson & Co.
• Robert W. Baird & Co.
• Janney Montgomery Scott
• Raymond James (also operates regionally in some markets)
• Stephens Inc.

While regional firms may offer a local touch, investors should be aware that resources for handling disputes or misconduct may be more limited.

Full-Service vs. Discount Brokerage Firms

Another important distinction is whether a firm is full-service or discount. Full-service firms provide financial planning, wealth management, and advisory services, while discount firms focus primarily on trade execution.

Full-service brokerage firms (examples):

• Merrill Lynch
• Morgan Stanley
• UBS Financial Services
• Wells Fargo Advisors
• Edward Jones
• Stifel Financial Corp.
• Raymond James Financial
• Ameriprise Financial Services
• Robert W. Baird
• Janney Montgomery Scott

Discount brokerage firms (examples):

• Charles Schwab
• Fidelity Investments
• TD Ameritrade (now part of Charles Schwab)
• E*TRADE (Morgan Stanley)
• Robinhood
• Vanguard Brokerage Services

For investors, this difference matters because discount firms often offer fewer safeguards and limited supervision, while full-service firms have more robust compliance obligations—but also greater potential for conflicts of interest.

Investor Records, Public Information, and Why It Matters

Brokerage firms are required to disclose information to regulators, which is made available to the public through systems like FINRA BrokerCheck. This transparency helps investors research their advisors, but it also highlights how often firms and advisors face complaints.

• BrokerCheck shows customer disputes, employment history, and disciplinary actions.
• Firm websites often provide compliance disclosures, but may downplay disputes.
• Regulatory filings such as Form U4 and U5 provide official records of advisor activity.

Importantly, brokers sometimes seek to have disputes “expunged” from BrokerCheck. While some expungements are legitimate (such as mistaken identity), others may erase valuable evidence of misconduct. Investors should know that brokerage firms may actively try to remove these records, which can affect future investors’ ability to see an advisor’s history.

How Meyer Wilson Werning Helps Investors

For investors harmed by financial advisor misconduct, the type of firm involved often determines both the scale of the loss and the complexity of the recovery process. At Meyer Wilson Werning, we investigate both the advisor and the firm to hold them accountable. Whether your losses occurred at a global wirehouse, an independent broker-dealer, or a regional firm, our experience in arbitration and securities litigation ensures that your case is pursued with the resources it deserves. Contact us today for a free consultation.

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