Becoming an independent investment advisor can bring several advantages and possibilities. There are few markets as diverse and profitable as the investment market, after all, there are several different technologies, opportunities and sub-areas where the professional can offer his/her services. Both individuals and legal entities need advice in this sector, from someone who can highlight the best opportunities, in what and when to invest. However, not everything can be seen as an advantage: there are challenges, obstacles and a series of concepts that must be overcome for the advisor to be successful in his/her work.

Current Challenges for the Independent Investment Advisor

As much as working as a self-employed investment advisor guarantees many different advantages and opportunities for the professional, we can’t help but face challenges. Client acquisition, risk management and even building credibility are just some of the challenges we can see. Some of them relate directly to this professional area and others to practically the entire market. Regardless of the challenge, it is essential that the advisor knows how to identify and overcome them. The main current challenges for the independent investment advisor include:

Building and Maintaining Credibility

One of the most sensitive and important points for an independent investment advisor is building their credibility in the market. The investment market always requires a certain amount of authority and reliability, after all, this type of profession deals directly with the financial assets of its clients. For an individual or company to trust having their money managed by a third party, the third party must be more credible than the overwhelming majority of professionals in the market. This credibility is also constantly in focus and must always be managed by professionals.

Customer Acquisition and Retention

Acquiring clients is a challenge that is present in almost any profession, and so independent investment advisors must also deal with it. This is an area that is closely related to the professional’s image and marketing – so it is important for advisors to know where to look and how to attract the attention of their audience. Social media and the digital marketing market are an excellent way to acquire these clients, and it is necessary to carry out after-sales work to retain and build loyalty with each one of them. A well-done service is another key point in having a solid base of users for your service.

Regulatory and Legal Compliance

Like many markets, the investment advisory market also has its main regulations and it is essential to provide a service that complies with the rules and laws. Here, there is a double concern, since this need is important to increase the credibility of your company and also to bring security to the service. An independent investment advisor who does not comply with the main security standards and regulations puts the entire service at risk and may face serious sanctions in court. It is essential that the investment advisor seek guidance through the CVM – Securities and Exchange Commission – maintained by the Central Bank and which regulates investment advisors.

Access to Competitive Products and Tools

When carrying out your work as an advisor, it is very important to have practical resources, such as platforms, software, financial market tools and other resources. An investment advisor should have some of the following platforms to perform their job well:

• Financial market analysis terminals;
• CRM customer management software;
• Platforms for your portfolio;
• Planning tools;
• Trading platforms.

Access to certain important services related to the investment area is also essential. For this reason, BLOCKBR is the right place for any advisor looking to adapt to the new technology market and diversify their services to provide advice on investments in tokenized funds. With BLOCKBR, you have access to several types of crypto, such as DREX, the Brazilian digital currency. Our VASP is focused on offering all the resources necessary to manage and trade tokenized assets easily and securely.

Risk Management

Managing risks is one of the most basic activities for an independent investment advisor. This should be one of the skills most cultivated by these professionals, after all, their clients seek their services precisely to minimize risks and have more confidence in using their finances. Good risk management is essential for the professional to grow in their field, attract more clients, establish their credibility in the market and increasingly have control over the success of their advice. The topic should be a priority in the life of any professional in the field.

Pricing Pressures and Competitiveness

Dealing with pressure is undoubtedly a considerable obstacle in the life of any advisor. This pressure can manifest itself in many ways, such as when pricing your products correctly, for example. Knowing how to beat the competition is also an important aspect when dealing with external pressure. It is important for the investment advisor to define their prices for various products, such as their advice and consultancy, from traditional securities to asset tokenization or crypto such as Bitcoin ETF and Ethereum ETF, as well as other digital assets.

Continuing Education and Professional Development

Every advisor must be constantly learning and developing their professional skills. The world of investments can be quite diverse and is constantly changing. It is the professional’s role to keep up with market developments and stay up to date in order to provide excellent service. Seeking out good courses and educational resources is also a way to ensure greater credibility in the market, and offering even more solutions and services is, without a doubt, one of the smartest methods of capturing leads and clients.

Work-Life Balance

A challenge that goes beyond the professional aspect for the independent investment advisor is their professional life and the balance needed to not neglect either side. Although their profession is very important, it is essential to have time available for leisure and to enjoy their day-to-day life.

Impact of Technological Innovation

Technology is increasingly embracing the investment market, and advisors must be ready to provide full support to their clients in dealing with these resources. Investments are already a sensitive topic that raises many questions for those who are not in the field, and technology can increase this complexity. We have already mentioned token and blockchain technology, which, although it has facilitated access to the world of investments, is still not clear to the general population. Advisors must be a reliable bridge between these new developments and their clients, and must be knowledgeable about the subject to be able to explain it to their business partners.

The Path to Success for the Independent Investment Advisor

Achieving success as an independent investment advisor is quite difficult and can certainly add to the challenges that the profession brings. This is a rich field, full of opportunities, but it requires commitment, intelligence and constant development for professional success.

Migrate to tokenization with BLOCKBR infrastructure, Access Funding with BLOCKBR Plugged-in Investment Advisors.

The unlocking of the capital market, giving access to new types and structures of investments through tokens, is bringing a universe of opportunities every day. Blockchain technology is an environment of high security and transparency, as well as being a backdrop for the creation of new operating models. To understand which tokenization model and infrastructure you can use in your operations, you just need to understand the opportunities you can take on, whether as a structurer, originator or distributor/investor. Become an investment advisor for digital assets (structured tokens) through BLOCKBR. You can also be an asset structurer and use our entire risk analysis, legal, technological and commercial infrastructure for distribution with Station or, if you prefer, just raise tokens by investing in your operations or RWA assets. Count on us.