Advisory vs. Brokerage Do You Understand the Difference between Advisory and Brokerage Services? You Absolutely Need To! ADVISORY Relationship – As a registered investment advisor, LPL Financial is a fiduciary to its advisory clients and, as such, is obligated to act solely in the best interest of clients and make full and fair disclosure of all material conflicts of interest. LPL Financial and its financial advisors offer a number of investment advisory programs and services. For such service, clients pay LPL Financial and “all-in” fee for investment management, brokerage, custody and administrative services. BROKERAGE Relationship – Unlike an investment advisory relationship in which clients pay an ongoing asset-based fee, in a brokerage relationship, clients typically pay a commission to LPL Financial on each transaction in the account. The amount of the commission in a brokerage relationship varies depending on the security or investment product selected by the client. When LPL Financial acts as a broker/dealer, it is not a fiduciary under applicable law, but has a duty to deal fairly with its brokerage clients. Unlike an investment advisory program account, the LPL Financial advisor has no duty to provide ongoing investment advice with respect to some brokerage accounts.