What's the difference between a Broker and a Fiduciary Advisor?
Who You Trust With Your Money
At MVM Advisors, we are a fee-only fiduciary Registered Investment Advisor (RIA)—and that distinction is critical.
Many investors assume all financial professionals are legally obligated to act in their best interest. They’re not.
Stockbrokers, also known as Registered Representatives (RRs), are not fiduciaries—even if they call themselves “financial advisors.”
Suitability vs. Fiduciary Standard
Broker-dealers, banks, and their registered representatives are not required to meet fiduciary standards.
Instead, they’re held to what’s called the suitability standard, which is far less stringent.
Here’s what that means:
A broker can recommend an investment that earns them a higher commission, even if a lower-cost or better-suited option exists.
From the SEC website:
Suitability Standard:
“When your broker recommends that you buy or sell a particular security, your broker must have a reasonable basis for believing that the recommendation is suitable for you. This includes considering your income, net worth, investment objectives, and risk tolerance.”
What is a fiduciary?
Per Investopedia:
“A fiduciary is a person or organization that owes to another the duties of good faith and trust. The highest legal duty of one party to another, it also involves being bound ethically to act in the other’s best interests.”
Fiduciaries manage your assets with the sole obligation to prioritize your financial well-being. They must avoid conflicts of interest and disclose any that exist. Fiduciary roles are common in professions like money management, accounting, trust administration, and corporate governance.
What you get with MVM Advisors
When you work with MVM Advisors, you can be confident that:
We are legally and ethically required to act in your best interest
We receive no commissions from product sales
We are a fee-only RIA, focused solely on your financial success
Not all advisors are fiduciaries. Make sure yours is.
Are you ready to live your best life?
At RDFP, we are committed to guiding you through every financial stage of life with customized, client focused strategies
