START-UP FAQs

If you are considering starting your own broker/dealer, you probably have a lot of questions and concerns. We know you need facts and information before deciding to move forward. Following are a few of the most commonly asked questions regarding starting a broker/dealer. Please review these questions and answers, then call Brokerage Consulting Group, LLC for more details about starting the process.

Q. What do I do first?
A. It's easy. Call Brokerage Consulting Group, LLC for a free, no obligation proposal or use our Start-Up Estimate Calculator for a general estimate of your registration costs.

Q. How long will it take to start a broker/dealer?
A. Based on our past experience with all FINRA districts, it takes approximately 4 - 6 months from the date we make the first submission to FINRA office in your district to receive final FINRA membership approval. The length of time it takes to gather information and documentation required for the submission depends on you, or the person appointed to work with BCG during the registration process. We do the majority of work for you; however, there are some things we can't do and some questions that we rely on you for the answers.

Q. How much will it cost?
A. Cost will vary. It depends on the type of firm you want to own, the products you want to offer and the number of representatives, branches and states in which you want to be registered. BCG offers a tool on our web site that will allow you to request a free estimate of start-up costs. Please click the link to our Start-Up Estimate Calculator. Then, call BCG for a more detailed proposal and information on how to get started.

Q. Do I have to use a firm like Brokerage Consulting Group, LLC or can I handle the start-up process myself?
A. Yes, you could handle the registration process yourself, but why would you want to? Your time is valuable and may be better spent building your business. Call BCG to see how we can ease the burden of the registration process.

Q. If I have already started the process, but now I need some experienced help to complete it, can I call Brokerage Consulting Group?
A. Yes, BCG is prepared to handle the registration process for your firm from the start or pick it up at any stage in the process. Call BCG for a quote based on your specific situation. Our experience could be just the additional help you need to complete the process.

Q. Do I have to be securities licensed to own my own broker/dealer?
A. If you are an owner and/or officer of the new broker/dealer, FINRA will probably require you to become registered as a principal on the firm. However, this is an area where we need to discuss your particular situation to accurately determine your registration exam requirements. Also, FINRA requires each broker/dealer to have a minimum of 2 qualified principals (depending on the business you want to conduct), as well as a Financial and Operations Principal. If you wish to handle products such as Municipal bonds and/or options, your firm will also need a qualified Municipal and/or Options Principal.

Note: In special circumstances, you may be eligible to apply for a Waiver of the Two Principal Requirement.

Call BCG to discuss your specific exam and licensing requirements.

Q. I currently work for another brokerage firm. Will they discover that I am trying to start my own firm?
A. This is a difficult question to answer. Please Call BCG to confidentially discuss your particular situation.

Q. My business will require the services of a clearing firm. Can you refer one to me?
A. Yes, BCG maintains a list of clearing firms you may wish to contact to discuss clearing services available.

Q. I will need some initial help setting up our compliance, supervision and/or financial systems. Can Brokerage Consulting Group help?
A. BCG has a staff of consultants with the experience to help you set up various systems or controls. We can also continue to offer the support you need after you become a FINRA member firm.

Q. My U4 is not exactly "clean." Can I still start a broker/dealer with any "Yes" answers on my U4?
A. It depends on the problem(s) that occurred in your past. Call BCG to confidentially discuss your history and how it may or may not affect your chances of owning a broker/dealer.

Q. I currently own/manage a broker/dealer, but I need to add additional services or products. Can Brokerage Consulting Group help me with this process?
A. Yes, BCG consultants have extensive experience filing for any material changes in your business. Call BCG to discuss a filing (1017 Filing) and the costs associated with the change process.

Q. Can't I just buy a broker/dealer? Wouldn't it make the process easier and faster?
A. A few years ago it was easier and faster to buy a firm; however, that is no longer necessarily the case. The time and energy you are likely to spend purchasing a firm is almost the same as starting one. However, your situation may be conducive for purchasing an existing firm. Call BCG to discuss your particular position and get the pros and cons of purchasing a broker/dealer so you can determine which path is best for you.

Q. I am ready to get started. Why should I choose Brokerage Consulting Group, LLC?
A. BCG has the experience, the industry contacts and the knowledge to guide you through this daunting process. We are also available 24/7 to answer your questions. Call BCG to get on the road to owning your own broker/dealer.

Q. I just need assistance with registering my firm and representatives in additional states. Can BCG handle this process for me?
A. Yes, BCG has extensive experience working with the various state regulators. Each state has a different set of requirements and fees in order to register the firm and its representatives. Free up your time so you can grow your business and allow BCG to handle this registration and licensing process for you.