- On November 16, 2017
Edward Jones & LPL biggest in headcount but not in advisor size.
While LPL boasts the biggest advisor force in the independent channel, Edward Jones is now the biggest broker dealer in our industry in advisor headcount.
Edward Jones now has 15,795 advisors which eclipses the 15,759 advisors at Morgan Stanley. However, Morgan Stanley advisors have about twice the assets, revenue and experience of the typical Edward Jones advisor.
Edward Jones now has 13,314 branches which typically have one EJ advisor and an Office Administrator who is an employee of Edward Jones and not the advisor. EJ added 502 branches in the last year alone.
The advisor attrition rate in the third quarter dropped from over 9% to just under 7%.
Edward Jones is targeting to hit 20,000 advisors within 5 years.
Biggest employee channel firms by headcount:
- Edward Jones 15,795
- Morgan Stanley 15,759
- Merrill Lynch 14,954
- Wells Fargo 14,564
- UBS 6,861
The typical wirehouse advisor has more than twice the assets, revenue, experience and managed money than the typical Edward Jones advisor.
Edward Jones generates about 75% of total revenues from mutual funds and annuities and 14% of their total revenue came from sales from just one single mutual fund company.
If you compare the Edward Jones advisors with 10 years experience, and even just 5 years, then Edward Jones goes from 1st to last on this chart.
Biggest independent channel firms by headcount:
- LPL 14,253
- Lincoln 8,885
- Raymond James 8,326
- Ameriprise 7,668
- AXA 4,765
On the independent side, the largest broker dealer by headcount is LPL. But compare the head count quantity to the individual advisor quality of other firms. Ameriprise has about half the headcount LPL does but Ameriprise independent advisors average almost 3 times the revenue of the average LPL advisor.
So, is the size of the advisor force or the size of the individual advisor most important? Edward Jones and LPL have the biggest advisor forces but the smallest advisors in average assets and revenue compared to their closest peers.
Posted by Darin Manis
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