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Registered representative vs investment advisor

The differences between registered 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 a registered 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 $54,074 average annual salary of a registered representative.

The top three skills for a registered representative include financial services, financial products and securities. The most important skills for an investment advisor are exceptional client, risk management, and client relationships.

Registered representative vs investment advisor overview

Registered RepresentativeInvestment Advisor
Yearly salary$54,074$105,377
Hourly rate$26.00$50.66
Growth rate10%15%
Number of jobs17,62263,438
Job satisfaction--
Most common degreeBachelor's Degree, 80%Bachelor's Degree, 76%
Average age4345
Years of experience64

What does a registered representative do?

A registered representative's job involves researching market conditions, liaising with potential clients, implementing advertising campaigns, cultivating personal contacts, and creating investment plans. Their duties and responsibilities include soliciting business from potential clients and selling financial products and services to clients for investment purposes.

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.

Registered representative vs investment advisor salary

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

Registered RepresentativeInvestment Advisor
Average salary$54,074$105,377
Salary rangeBetween $33,000 And $88,000Between $60,000 And $184,000
Highest paying CityNew York, NYNew York, NY
Highest paying stateNew YorkNew York
Best paying companyNew York Life InsuranceMcKinsey & Company Inc
Best paying industryFinanceTelecommunication

Differences between registered representative and investment advisor education

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

Registered RepresentativeInvestment Advisor
Most common degreeBachelor's Degree, 80%Bachelor's Degree, 76%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Minnesota - Twin Cities

Registered representative vs investment advisor demographics

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

Registered RepresentativeInvestment Advisor
Average age4345
Gender ratioMale, 77.4% Female, 22.6%Male, 72.3% Female, 27.7%
Race ratioBlack or African American, 5.8% Unknown, 4.2% Hispanic or Latino, 12.3% Asian, 10.3% White, 67.2% 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 registered representative and investment advisor duties and responsibilities

Registered representative example responsibilities.

  • Manage variable and fix immediate and defer annuities for wealth accumulation.
  • Develop knowledge of complex financial instruments and successfully communicate strategies for utilizing various securities in achieving client financial objectives.
  • Manage and strengthen customer relationships through cross-selling and up-selling to maximize retention and income generation by contacting existing and prospective customers.
  • Intern at the NYSE with the M/S floor trader.
  • Provide due diligence for IPO of small cap.
  • Assist companies with development and sale of initial public offering (IPO).
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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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Registered representative vs investment advisor skills

Common registered representative skills
  • Financial Services, 25%
  • Financial Products, 14%
  • Securities, 6%
  • Annuities, 4%
  • Long-Term Care, 4%
  • Health Insurance, 3%
Common investment advisor skills
  • Exceptional Client, 12%
  • Risk Management, 10%
  • Client Relationships, 9%
  • Health Insurance, 8%
  • Business Development, 7%
  • FINRA, 5%