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:
RJF
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.