Despite advisor misconceptions, discount brokerages pose the greatest risk to advisors' books of business.

Boston, MA, December 7, 2009 – Based on an Aite group survey of 402 financial advisors, a new report from Aite Group, LLC examines whether discount brokerages have had a direct effect on financial advisors' books of business.

The report reveals that nearly 70% of financial advisors see online brokers as having no threat to their business. Despite this, there is a clear dichotomy between perception and reality as it pertains to actual business lost. While advisors believe they have a net customer gain against discount brokerage firms, average asset flows show discount brokers with a 25% advantage in inflows versus outflows to their advisory-based competitors in the last two years.

"Despite the barrage of advertising by discount brokers emphasizing a go-it-alone philosophy and attacking financial advisors for high fees and poor performance in the market downturn, advisors have yet to recognize the threat," says Adam Honoré, research director with Aite Group and author of this report. "Advisors must wake up to reality and combat the messaging coming from the discount brokerage arena. Advisory firms need to offer more competitive online and mobile solutions to foster 'sticky' relationships."

This 15-page Impact Note contains 14 figures. Clients of Aite Group's Wealth Management service can download the report by clicking on the icon to the right.

Related Aite Group Research:

• New Realities in Wealth Management: Ready for the Sea Change?
• Efficiency in Wealth Management: Increasing Advisor Mobility
• Desktop Convergence of Wealth Management and Retail Brokerage: Competing in a Changing Landscape
• Wealth Management Goes Independent: Spotting the Breakaway Brokers
• Registered Investment Advisors: The State of Technology and Its Impact on Advisor Efficiency

To purchase this report or
for additional information,
please contact:
Aite Group Sales
Tel: +1.617.338.6050
sales@aitegroup.com