Wire House Firms

“Wire house” typically refers to the major investment Firms with a Wall Street presence. These Firms typically have multiple business divisions, including investment banking, brokerage, asset & wealth management, as well as retail banks, all under the same controlling entity. Advisors and their clients often associate these Firms with the prestige behind their names.

  • Nearly all Advisors working for a wire house will be in employee roles, with the Firm owning the client relationships.

  • Most Brokers and Advisors for wire houses are paid from the commissions and asset management fees generated from their clients. Payout grids will vary from Firm to Firm, but the typical average is in the 40-45% range.

    Firms may also pay bonuses based on an array of criteria, as well as for cross-selling and referring clients to other business divisions of the Firm.

    Wire house Firms often offer the best transition bonus packages to Advisors joining from competitors, subject to contractual terms surrounding assets transferred and Advisor retention.

  • The Firm will contractually own the client relationships and enforce these contracts strictly when employees change Firms and attempt to take clients with them. However, it is common practice to allow the Advisor to freely transfer clients whose accounts joined with them as part of a previous transitions.

  • Some Advisors may be allowed to construct their own teams within the Firm, but they will be limited in their ability to self-brand. In most cases, the Advisor must operate under the Firm's name and advertise only with company approved marketing materials and on the Firm's website.

    • Association with a prestigious brand.

    • Client opportunities from the brand itself as well as referrals from other business divisions of the Firm

    • Benefits, including stock options in the company.

    • Highest signing bonuses for experienced Advisors bringing existing client relationships with them.

    • Highly competitive environment with rigid commission growth requirements

    • Difficulty to retain client relationships if the Advisor leaves the Firm

    • Little control in the management decisions of the Firm.

    • Compensation structure may change with no input from the Advisors.

    • High failure rate of New Advisors, with most typically leaving or being terminated within the first 3 years.