Before meeting with our team, many of our clients have a vague idea of the difference between what we do as fiduciaries and what a broker does. We like to clear up any confusion because although there are some similarities, most brokers' ethical standards and goals are very different from that of a fiduciary.
Generally speaking, you can think about the two in these terms:
Brokers are financial professionals held to a suitability standard that incentivizes them to recommend investments they believe make the most sense for a given situation. Their goal is to find ways to maximize profits, which sometimes comes with risks to their clients. This approach is broad and less personalized as they are more concerned with profitability than finding a solution that fits your needs in a financially holistic manner.
A fiduciary is much closer to a financial advisor than a broker. We are held to stricter rules and regulations as part of our standard of care. These rules legally require us to act in your best interest and find financial solutions that are best suited for your specific context and goals. In fact, the duty of a fiduciary is the highest standard of care under American law, so you can rest assured we always act in your best interest.
A helpful way to conceptualize the difference is seeing brokers as butchers and fiduciaries and dieticians. Butchers just want to sell you the meat you come to buy. Dieticians want the best for your health. The video below paints the picture: