Have You Outgrown Your IBD or the Model Itself?
Sunday, February 8, 2026
Advisors affiliated with independent broker/dealers often assume that “independence” is a destination rather than a spectrum. Yet, when frustration creeps in or ambition outpaces the platform, the question isn’t simply whether to change firms, but whether the model itself still fits. For some advisors, that leads to a deeper evaluation: “Have I outgrown my IBD, or is it time to consider launching my own RIA?”
The answer depends largely on what you are trying to solve. It’s well documented that advisors who leave an independent broker/dealer are more likely to move to another independent broker/dealer. But just because it’s the most common path doesn’t mean it’s the right one for every advisor. With greater emphasis than ever on autonomy, control and the very definition of “independence,” it’s worth discussing which advisors are a fit for the leap to the RIA model.
Why do advisors leave their IBD to begin with? Much like advisors leaving captive channels, there are two overarching themes:
Push Factors: At its core, these are frustrations or limitations with your current IBD. Poor service, outdated or inefficient technology, a limited menu of investment options, overly onerous compliance, the list goes on. Advisors will sometimes say, “I feel hampered by my broker/dealer,” or “I’ve outgrown this place.”
Pull Factors: That magnetic draw towards something bigger and better. More autonomy, higher payout, ability to acquire businesses and ability to sell your own business. There is a common misconception in our industry that advisors move only because they feel frustrated or limited. In my view, advisors move because they feel frustrated or limited and because they genuinely believe that something else out there will be meaningfully better.
Most advisors who leave an IBD cite a combination of these factors: they feel frustrated, limited, or hampered in some way, yet also excited about something in the future. The real question is whether they’ve outgrown their IBD or whether they’ve outgrown the model entirely, and it’s time to consider launching an RIA.
Simply put, it’s the path of maximum autonomy, freedom and control. Especially for advisors who have been independent under a b/d umbrella for some time, the idea of running an independent business (managing real estate, health benefits, compliance, etc.) is likely not that daunting. Setting up the chassis and infrastructure required to own and operate your own RIA is often not as big a leap for an IBD advisor as it might be for an advisor coming from a captive channel.
From an economic perspective, many advisors can operate more efficiently under the RIA model because they have complete control over P&L and expense discipline.
Worth noting, “the RIA space” does not necessarily mean fee-only models. Many (if not most) RIAs operate hybrid models that facilitate or accommodate brokerage business through a “friendly broker/dealer”.
Lastly, many advisors have a highly specific reason for considering change. Some of those reasons lend themselves much more to the RIA model than the b/d model, including:
Desire to acquire businesses
Desire to sell your own business
Desire to add or change asset custodians
Maximum flexibility with technology stack
Maximum flexibility with outside business activities
Fears about ownership or control at the current b/d
At the end of the day, for advisors who don’t feel the IBD model is independent enough, the RIA model is the logical next step.
First and foremost, let’s start with the elephant in the room. Scale matters in the RIA space. Many IBD practices are simply too small to seriously consider launching their own RIA. For advisors managing less than $100 million in assets, for example, the IBD model typically makes more sense. Even for larger advisors, the IBD model is far more scaffolded and supported than the RIA space. And that brings us to our next point. Launching, owning, and operating an RIA is not for everyone: it’s a lot of work. Many advisors prefer the ease and turnkey nature of the IBD platforms, and the economic delta between a well-run IBD practice and a well-run RIA is not that substantial. Lastly, IBDs offer transition dollars in a way that the RIA space does not. The ability to meaningfully de-risk and monetize a move upfront generally does not exist in the RIA space unless an advisor is willing to consider selling equity.
There is a reason why IBD-to-IBD moves are the most common moves in the independent space. For many advisors, the IBDs provide the right mix of strong economics, support, platform and autonomy.
The rise of “supportive independence” platforms is a welcome development for advisors who want the best of both worlds. These platforms offer advisors the benefits of the RIA space (multi-custody of assets, open-architecture technology and investment platforms, flexible compliance, etc.) without many of the hassles associated with launching one’s own RIA. Some such platforms even offer transition capital to help close the gap with IBDs. We hear from many IBD advisors that they feel they’ve outgrown the IBD model but don’t have the size or appetite to launch their own RIA—making these platform firms a compelling alternative.
Independent advisors today have more viable paths than ever, and that’s a good thing. But with more choice comes more responsibility to be honest about what you’re truly solving for. Whether the answer is a different IBD, a supportive independence platform, or launching an RIA, the right move starts with understanding whether your motivation is firm-specific or model-specific—and being clear-eyed about what the next chapter of your business actually requires.
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