The way an investment advisor is paid can be through commissions and fixed fees. In this way, the professional is able to earn from the client’s results and, in this way, has a certain degree of predictability as to what their results will be while guiding their professional activities. However, with the constant changes brought about by the CVM’s demand for more transparency, many forms of remuneration tend to be chosen more than others. Even with the changes, the advancing era of asset tokenization means that the remuneration of investment advisors is being researched more and more due to the great need for this professional in the future.
What is an Investment Advisor’s Career Like?
An investment advisor’s career is full of constant research to help clients choose the best investments for their portfolio. As such, they need to develop as much knowledge as possible in different applications such as fixed income, equities and the use of tokens in order to provide the best customer service. Because the tokenization of assets is already a reality and offers several new investment options compared to more traditional models, many investment advisors will need to invest in new knowledge training. Understanding what VASPs are, for example, is essential as it allows professionals to enter the tokenization era, since these concepts are indispensable for the growth in the use of digital assets. Because they are entities capable of connecting those who offer digital assets with investors, understanding this concept is indispensable for understanding the progress of the token, for example.
Investment Advisor Remuneration Models
The differences between each model lie in the way the investment advisor’s remuneration is calculated. Because of the great trend towards the development of new digital asset applications and the growth in the use of tokens, each of the ways of earning should be chosen carefully.
Commissions
The commission is the investment advisor’s form of remuneration based on brokerage income. In addition, fund management fees, IPOS fees or the distribution of fixed income assets can also make a difference to the final amount the advisor receives. Because commission is the most widely used form of remuneration for investment advisors in Brazil, it varies depending on the characteristics of the allocation or the way the client’s portfolio is composed. Therefore, be aware of the properties of this type when you enter the area of advisors.
Fixed rates
Fixed fees are widely used by investment advisors living in the United States. The entire calculation is based on the total assets of the clients present and also takes into account custody at the brokerage house. It is worth noting that this model is independent of the products allocated and has a fee variation of between 0.6% and 1%.
Performance-based pay
Performance-based remuneration for investment advisors is based on the intensity of their work with clients. Consequently, earnings are calculated based on this measure and, with the variations that some fees may present, remuneration may vary.
Combining models
There are some places that use a combination of models to remunerate investment advisors. In this way, it is possible to carefully combine the characteristics and thus provide earnings that are in line with the reality of both the professional, the investor and the broker.
Tips for Building a Successful Career as an Investment Advisor
Enriching your knowledge is a great way to have a successful career as an investment advisor. In addition to the mathematical training to carry out the calculations needed to discuss with clients, taking the time to understand world events is also quite interesting It’s not too difficult to find a lot of research and tips that try to tell you how to be a self-employed investment advisor. Understanding the new trends in asset tokenization and being aware of how blockchain technology makes a difference are also very interesting tips for building an excellent career in the area.
Enrich your knowledge
Enriching your knowledge will make you a much more competent investment advisor, able to deal with the different applications that appear on the market. Constant reading about current financial trends, mathematical training to enhance your ability to understand applications and obtaining great contacts are the essential steps to creating a very solid and interesting career. One of the most important pieces of knowledge to acquire today is about DREX. This creation, which was only made possible by the establishment of tokenization, is a major trend in future investments in this area and requires the attention of anyone who wants to become a successful advisor. It’s also worth commenting that it’s interesting not only to focus on knowledge of the area, but to expand your knowledge to others. An advisor who knows how to communicate well, for example, is able to understand and retain a greater number of clients, which is essential for leveraging the potential of their profits in the profession.
Observe customer demands
Paying attention to what your clients tell you about their desired investments is extremely important if you want to make a name for yourself in the field. As a result, the investment advisor’s remuneration tends to be higher because they are more sought after and their satisfaction with the professional’s service increases considerably. Knowing your customers’ demands is also very important if you want to know which trends you should be paying attention to. Consequently, it will be possible to understand how to use these applications and how to explain them to future customers who have the same demand. A very common demand is for greater convenience in managing assets, which can be difficult at first for both advisors and investors. To solve this problem, you just need to get to know BBR Management and have the presence of a single environment with the security and functionalities needed to take advantage of the efficiency of tokenization and blockchain technology.
Count on the BLOCKBR platform
By creating an account with BLOCKBR, you will have made an indispensable move towards a promising future as an investment advisor. With all our state-of-the-art technology, we offer an environment that always complies with regulations and provides the best service for your client.
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.