There have been estimates that the number of broker-dealers registered with FINRA fell by nearly 10% between 2005 and 2010, a trend that has continued over the past couple of years, and is expected to be seen in the future, due to a couple of key factors. Below is an overview of the key trends driving the continued decline of independent broker-dealers.

Industry Consolidation
LPL Financial (Nasdaq:
Raymond James (NYSE:
Heightened Regulatory Environment
Technology Needs
Other Considerations
The Bottom Line
At the time of writing, Ryan Fuhrmann did not own shares of any of the companies mentioned in this article.