Independent financial advisors switching broker-dealers prioritize a smooth transition, supportive infrastructure, and a business-friendly environment with product and operational flexibility. 

Recruiter Derrick Friedman emphasizes that advisors now have the leverage to demand these conditions—and if broker-dealers (BDs) don’t meet them, they risk decline. Industry consolidation has shrunk the pool of large BDs, prompting many advisors to consider RIAs, especially those seeking fewer compliance burdens and more freedom to grow fee-based practices. 

Hybrid models remain attractive to advisors who still maintain transactional business and want to retain flexibility. Technology—like DocuSign—has reduced friction in transitions, making it easier for advisors to move their book of business quickly. 

Finsum: While RIAs are expanding rapidly, BDs aren't disappearing; instead, consolidation is pushing advisors and recruiters alike to explore a wider landscape of firms.