Planners at IBDs, Wirehouses Earn Highest Salaries Among Advisors
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Summary
Financial advisors at independent broker-dealers earned the highest median total compensation in 2025 at $226,000, followed by wirehouse advisors at $214,000, according to the CFP Board's latest compensation study covering more than 7,000 certificants. Advisors at registered investment advisors reported the lowest median compensation at $175,000, while those at big banks and hybrid RIAs fell in the middle.
Market Impact
The compensation gap between distribution channels reflects structural differences in revenue-sharing arrangements, compliance overhead and client-mix. The data reinforces how the ongoing migration of breakaway advisors from wirehouses to RIAs involves a measurable earnings trade-off, even as practice-management advantages drive the shift. This analysis is informational and avoids any directional trading claims.
Why It Matters
It provides a quantified baseline of advisor compensation across channels, making visible the financial trade-offs that drive breakaway and hybrid-channel decisions in wealth management.
Key Points
- Independent broker-dealer advisors had the highest median compensation at $226,000 in 2025; wirehouse advisors followed at $214,000; big bank advisors at $206,000; hybrid RIAs at $181,500; and pure RIAs at $175,000.
- Nearly 40% of CFP professionals engaged in profit sharing at their firms last year, and about a quarter received elder and child care benefits.
- About 85% of CFP professionals described their careers as rewarding, citing stability, work-life balance and opportunities for advancement; nine in 10 expected to remain with their current firm for at least two years.
- Breakaway advisors who leave wirehouses for RIAs accept a potential earnings reduction in exchange for operational benefits including lower compliance overhead and greater autonomy.
Key Entities
Evidence
Advisors at independent broker-dealers and wirehouses were the industry's highest earners last year, with median compensation (salary, bonuses, profit sharing) of $226,000 and about $214,000, respectively, according t...Supports: Supports the IBD and wirehouse compensation figures.
Advisors at big banks and hybrid RIAs fell in the middle, earning median compensation of $206,000 and $181,500. Advisors working at RIAs reported the lowest median compensation at $175,000.Supports: Supports the bank, hybrid RIA and RIA compensation figures.
Nearly 40% of CFPs engaged in profit sharing at their firms last year. About a quarter received elder and child care benefits. Some 60% have access to employee wellness programs.Supports: Supports the non-cash benefit data.