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Investment representative vs investment advisor

The differences between investment representatives and investment advisors can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 4-6 years to become an investment representative, becoming an investment advisor takes usually requires 2-4 years. Additionally, an investment advisor has an average salary of $105,377, which is higher than the $65,361 average annual salary of an investment representative.

The top three skills for an investment representative include money management, mutual funds and financial services. The most important skills for an investment advisor are exceptional client, risk management, and client relationships.

Investment representative vs investment advisor overview

Investment RepresentativeInvestment Advisor
Yearly salary$65,361$105,377
Hourly rate$31.42$50.66
Growth rate10%15%
Number of jobs35,91463,438
Job satisfaction--
Most common degreeBachelor's Degree, 78%Bachelor's Degree, 76%
Average age4345
Years of experience64

What does an investment representative do?

Investment representatives, also known as financial advisers, usually work in a bank, investment company, credit institution, or other financial firm. They handle the marketing and promotion of financial services and give clients investment advice. They do this is the phone or through face-to-face transactions. This position requires someone to be customer-oriented, communicate effectively, and know how to handle a crisis.

What does an investment advisor do?

An investment advisor is responsible for managing the clients' financial portfolios, advising them of investment options according to their financial goals and objectives, and their ability to handle risks. Investment advisors should have excellent knowledge of the investment policies, providing the clients with the best financial strategies according to their interests. They also determine their expenses, income, and credit scores to identify a comprehensive financial plan. An investment advisor helps the clients with cash management techniques, as well as conducting data analysis on financial market projections.

Investment representative vs investment advisor salary

Investment representatives and investment advisors have different pay scales, as shown below.

Investment RepresentativeInvestment Advisor
Average salary$65,361$105,377
Salary rangeBetween $37,000 And $112,000Between $60,000 And $184,000
Highest paying CityNew York, NYNew York, NY
Highest paying stateNew YorkNew York
Best paying companyAmerican Century InvestmentsMcKinsey & Company Inc
Best paying industryFinanceTelecommunication

Differences between investment representative and investment advisor education

There are a few differences between an investment representative and an investment advisor in terms of educational background:

Investment RepresentativeInvestment Advisor
Most common degreeBachelor's Degree, 78%Bachelor's Degree, 76%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Minnesota - Twin Cities

Investment representative vs investment advisor demographics

Here are the differences between investment representatives' and investment advisors' demographics:

Investment RepresentativeInvestment Advisor
Average age4345
Gender ratioMale, 72.1% Female, 27.9%Male, 72.3% Female, 27.7%
Race ratioBlack or African American, 5.9% Unknown, 4.2% Hispanic or Latino, 12.4% Asian, 9.9% White, 67.4% American Indian and Alaska Native, 0.2%Black or African American, 5.6% Unknown, 4.4% Hispanic or Latino, 9.4% Asian, 8.2% White, 72.3% American Indian and Alaska Native, 0.1%
LGBT Percentage6%5%

Differences between investment representative and investment advisor duties and responsibilities

Investment representative example responsibilities.

  • Act as an investor center product coordinator; provide guidance on product and sales techniques for manage account solutions and annuities.
  • Manage and strengthen customer relationships through cross-selling and up-selling to maximize retention and income generation by contacting existing and prospective customers.
  • Re-Obtain previously hold FINRA licenses.
  • Sell fix and variable annuities.
  • License financial adviser & insurance producer register with both FINRA & the state of Massachusetts.
  • Answer inquiries with regards to equities, options, mutual fund, fixed-income and unit investment trusts.
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Investment advisor example responsibilities.

  • Manage and strengthen customer relationships through cross-selling and up-selling to maximize retention and income generation by contacting existing and prospective customers.
  • Obtain skills with different financial programs and tools such as Morningstar and NetX360.
  • Advise and recommend insurance products including, fix and variable annuities, and term life.
  • Focus on macroeconomic fundamentals, high yield, distress debt, volatility and macro base cross-asset statistical strategies.
  • Communicate information to clients on various products offer such as equity funds, bond funds, annuities, and money markets.
  • Identify client- specific and regulatory reporting requirements, review purchase and redemption activity, securities settlements, and cash movements.
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Investment representative vs investment advisor skills

Common investment representative skills
  • Money Management, 46%
  • Mutual Funds, 28%
  • Financial Services, 2%
  • FINRA, 2%
  • Customer Relationships, 2%
  • Market Trends, 2%
Common investment advisor skills
  • Exceptional Client, 12%
  • Risk Management, 10%
  • Client Relationships, 9%
  • Health Insurance, 8%
  • Business Development, 7%
  • FINRA, 5%