Thinking About Going Independent as a Financial Advisor?
Here’s Where to Start...
Before You Dive In...
Start with your goals, not the model. Define what you want your business, client experience, and future to look like before comparing firms or platforms.
Independence isn’t one-size-fits-all. Options range from IBDs and supportive independence to launching your own RIA, each with different levels of control and support.
More control also means more responsibility. Decide which aspects of the business you want to control and which you’d rather outsource.
Look beyond payout. Consider expenses, growth potential, ownership, enterprise value, and long-term economics when evaluating independence.
Exploring doesn’t mean leaving. Understanding your options can help determine whether independence makes sense or confirm that your current firm is still the right fit.
Common Questions Advisors Ask While Exploring Independence
What Is Independence for a Financial Advisor?
The term “independence” is used in different ways across the wealth management industry. At its core, it refers to business models that can allow advisors to own their books of business and build enterprise value, with varying degrees of control and support.
These include independent broker dealer affiliations, independent RIAs, and Supportive Independence platforms. Each offers a different balance of ownership, autonomy, infrastructure, and responsibility.
1. Is Independence Right for Me?
How do I know if independence is right for me?
Start with what’s prompting the question.
Many advisors begin exploring independence because they’ve encountered limitations at their current firm: restrictions on how they serve clients, technology shortcomings, changing compensation, growth constraints, succession concerns, or a desire for greater control.
Others aren’t necessarily unhappy. They simply want to understand whether their current firm remains the best place for the business they want to build over the next five, ten, or twenty years.
Ask yourself:
- What would I change about my business if I could?
- What do my clients need that I can’t easily provide today?
- How important are control and flexibility to me?
- Do I want to own and build equity in my business?
- How much responsibility do I want for running the business itself?
- What do I want this business to look like five or ten years from now?
You don’t need to decide that you’re leaving your firm to explore these questions. Understanding the alternatives may ultimately reinforce that staying put is the right decision.
Can I explore independence without committing to a move?
Absolutely.
Exploration and movement are two different things.
Understanding the wealth management landscape can give you a clearer picture of what your business might look like elsewhere, how different models compare, what your business may be worth, and what tradeoffs would accompany a change.
You may discover an opportunity that better supports your goals. Or you may conclude that your current firm remains the best fit.
Either outcome is valuable because the decision is based on knowledge rather than assumptions.
2. What Are My Options?
What are my options for going independent?
“Going independent” can mean very different things.
An advisor might affiliate with an independent broker dealer (IBD), launch an independent RIA, use a Supportive Independence or RIA platform, or join an existing independent firm.
Each offers a different balance of ownership, control, infrastructure, economics, compliance responsibility, and support. An IBD, for example, can provide a more turnkey environment, including technology, compliance and supervision, an investment platform, and other infrastructure. An RIA can offer greater autonomy and customization but may also place more responsibility on the business owner. Supportive Independence models provide independent ownership with varying levels of outsourced infrastructure and support.
There isn’t one “best” version of independence. The goal is to identify the structure that best supports the business you want to run.
Should I start my own RIA or join an independent broker dealer?
Both models offer business ownership, but they differ in the level of control and operational responsibility.
Launching your own RIA can provide greater flexibility to build the business as you envision it—from selecting custodians and technology to establishing your own compliance program, brand, and service model. That autonomy also comes with greater responsibility for managing infrastructure, vendors, staffing, and ongoing operations.
An independent broker dealer provides an established platform, with compliance oversight, technology, and operational support already in place. Advisors generally have less flexibility to customize certain aspects of the business but can spend more time focused on clients and growth.
Supportive Independence offers another alternative, allowing advisors to own their firms while outsourcing varying levels of infrastructure and support.
There are successful, high-growth businesses across all three models. The question isn’t simply RIA or IBD. It’s which structure gives you the right balance of freedom, support, and responsibility to achieve your business goals.
IBD vs. RIA Revisited: Two Independent Pathways for Advisors to Consider
When it comes to freedom and control, there are key differences amongst the independent broker dealer (IBD) and registered investment advisor (RIA) spaces that every advisor should be aware of.
What Can Independence Make Possible?
There’s no single path to success in independence. These three stories illustrate how advisors have built, grown, and evolved their businesses on their own terms.
$1.2B → $3.5B
$600mm → $10.5B
David Bahnsen | The Bahnsen Group
From Morgan Stanley to building a multi-billion-dollar business and pursuing a strategic transaction.
$3B → $18B
OnePoint BFG
Growing an independent business through mergers and strategic partnerships.
3. What Does Independence Really Involve?
How much control do I really want?
“More control” is one of the most common reasons advisors consider independence. But it’s worth defining what control actually means to you.
It might mean the ability to build your own brand, choose technology, customize the client experience, select investment solutions, determine your fee structure, hire and compensate your team, pursue acquisitions, create a succession plan, or build enterprise value.
But control also comes with responsibility.
Depending on the model, you may become responsible for functions your current firm handles today, including compliance, technology, real estate, human resources, cybersecurity, and vendor management.
The goal isn’t necessarily to maximize control. It’s to determine which decisions you want to control and which responsibilities you’d rather outsource.
Is going independent more profitable?
It can be, but payout alone doesn’t tell the story.
Wirehouse advisors typically receive grid payouts in the 45–52% range, often with a portion deferred and additional expenses for support staff. Independent advisors may see headline payouts of 85–95%, but platform fees, staffing, technology, and other operating expenses reduce what they ultimately take home. In our experience, established breakaway teams can often net 60–70% of revenue after expenses.
That’s why the better comparison isn’t simply payout versus payout. It’s the complete economic picture: revenue, expenses, transition economics, growth potential, equity ownership, and the potential long-term value of the business.
Independence also gives advisors greater control over how much they reinvest in their businesses versus take home as income. As the business grows, operating leverage may allow more incremental revenue to flow to the bottom line.
And unlike the employee model, independence can offer the opportunity to build equity and enterprise value over time. For some advisors, that longer-term wealth creation potential may be as important as the immediate improvement in cash flow.
What will my clients experience?
This should be one of the most important questions in the decision.
Consider what could improve: technology, investment capabilities, pricing flexibility, service, lending solutions, access to alternatives, reporting, or the overall client experience.
Then consider what might change or become more complicated.
A transition will require clients to open new accounts, complete paperwork, establish new online access, and potentially make new banking or lending arrangements. Most major independent broker dealers, custodians, and Supportive Independence platforms provide dedicated transition support to help manage the process and minimize disruption.
But the bigger question is what happens after the transition.
A platform may look attractive on paper but still be a poor fit if it can’t support the way you serve your clients. Rather than asking whether independence is better for clients in general, ask:
Would this particular model allow me to serve my clients better?
Advisor Movement at a Glance
The expanding range of options available to advisors is showing up in where they choose to go.
of departing wirehouse advisors chose an independent model.
That represents 666 advisors who moved to independence in just six months.
firms recruited at least one wirehouse advisor.
Destinations spanned wirehouses, regional and boutique firms, independent broker dealers, independent platforms, and RIAs.
Advisors aren’t simply moving more. They’re choosing from a broader range of models and firms than ever before.
Source: Diamond Consultants, H1 2026 Wirehouse Advisor Transition Report
4. What Does It Take to Build an Independent Firm?
What decisions will I need to make when building an RIA firm?
Building an RIA involves a number of interconnected decisions, beginning with how much of the business you want to build and manage yourself.
Key decisions typically include:
- Legal Structure and Compliance: Establishing the business entity, regulatory registrations, and ongoing compliance program.
- Custodian: Choosing where client assets will be held and how custodial services will support the business.
- Technology: Building a technology stack that supports advisors, operations, and the client experience.
- Staffing and Operations: Determining which functions to manage internally and which to outsource.
- Branding and Real Estate: Establishing the firm’s identity and physical or virtual presence.
- Business Economics: Developing a budget that accounts for startup costs, ongoing expenses, and future growth.
The good news is that going independent no longer necessarily means building every piece yourself. A substantial ecosystem of custodians, technology providers, consultants, transition specialists, outsourced services, and independence platforms can provide varying levels of infrastructure and support.
The key is determining which aspects of the business you want to control directly and where outside support makes sense.
How long does it take to go independent?
The timeline depends on the model, the complexity of the business, and the amount of preparation required.
Advisors typically spend two to four months evaluating their options and determining which model and firm best fit their goals. Once a decision is made, joining an existing RIA, independent broker dealer, or Supportive Independence platform generally requires approximately 90 days of transition preparation. Launching an RIA from scratch can take 90 to 180 days.
The complexity of the business, team structure, client base, regulatory requirements, technology needs, real estate, branding, and other factors can all affect the timeline.
Supportive Independence platforms and many IBDs can help streamline the process by providing infrastructure and transition support. Ultimately, the goal isn’t simply to launch as quickly as possible. It’s to be ready to operate effectively from day one.
5. What Do Advisors Often Overlook When Considering Independence?
Advisors naturally focus on economics, payout, technology, and the platform they’re considering. But some of the less obvious questions may have just as much impact:
- How will responsibilities change for my team?
- What happens if the business grows significantly?
- Can the platform support the clients I hope to attract—not just those I have today?
- Am I focused too much on cost—and not enough on value?
- How easily could I make another change in the future?
- What will my business be worth?
- What happens when I eventually want to monetize the business?
- Do I want to become a CEO—or primarily remain an advisor?
- What limitations am I exchanging for new ones?
Every model has tradeoffs. The objective isn’t to find an option with none. It’s to understand them before you commit.
Learn More About Your Options…
Explore the wealth management landscape and see how today’s expanding range of models and options compare.
How Other Advisors Have Done It
Curated podcast episodes featuring advisors’ candid stories on their leap to independence.
6. How Do I Evaluate My Options Objectively?
Who can help me think through my options?
An experienced advisor recruiter or consultant can help define your goals, understand the landscape, identify appropriate models and firms, compare options, evaluate economics, negotiate a deal, and coordinate a transition.
But objectivity matters.
The process should begin with you—not with a list of firms someone wants you to join.
At Diamond Consultants, our process starts by understanding your business, clients, goals, challenges, and vision for the future. From there, we help you evaluate your current firm against the broader landscape and determine which options, if any, warrant consideration.
Sometimes the right answer is independence. Sometimes it’s another employee firm. And sometimes it’s staying exactly where you are.
The goal is to know that you’re in the best place to build the business you want.
Not Sure Where to Start?
You don’t need to know which model is right for you—or even whether you want to make a change.
A conversation can simply help you understand the landscape, pressure-test your assumptions, and get a clearer picture of the options available to you. Schedule a private conversation.
Independence Resources for Financial Advisors
The RIA Builder’s Blueprint
Four foundational decisions involved in building an independent firm.
IBD vs. RIA: Which Model Fits Your Future?
A side-by-side look at two of the primary paths to independence.
The Wealth Management Landscape at a Glance
See how today’s expanding range of advisor models compares.
Advisor Self-Assessment
Define what matters most before evaluating firms or models.
Advisor Transition Report
See where experienced advisors are moving, which models are gaining traction, and what’s driving change across the industry.