Direct Answer
17 SEC filers are classified under the Standard Industrial Classification code that describes the full-service brokerages industry, and their latest annual reports show $261.8 billion of combined revenue and a median operating margin of 12.9%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Full-service brokerages employ advisers who give advice and sell investments to retail clients for commissions, advisory fees and interest on client cash. Revenue follows client assets and activity, and adviser productivity matters. The first numbers to compare across companies here are client assets and net new assets, fee-based share of revenue and advisor count and productivity.
Key Industry Metrics
- Client assets and net new assets: Value of client holdings and new money added less withdrawals. Net new assets show true gathering of business, apart from market moves.
- Fee-based share of revenue: Share of revenue from advisory fees based on assets rather than commissions. A higher share steadies revenue across trading cycles.
- Advisor count and productivity: Number of financial advisers and revenue generated per adviser. Productivity shows the quality of the sales force, and departures can lead to client losses.
- Net interest on client cash: Interest earned on client cash and loans less interest paid. It rises with rates and can swing when clients move cash to higher yielding options.
- Pre-tax margin: Operating profit before tax as a share of revenue. It shows efficiency after paying advisers, and fluctuates with markets.
Primary Macro Drivers
- Market levels and trading: Revenue from fees and commissions follows assets and trading, so market level and client activity lift client assets and fee-based revenue.
- Client cash balances and rates: Clients hold cash that earns interest for the firm, so rate levels and cash balances change net interest on client cash.
- Advisor recruiting: Experienced advisers bring client assets when they join, so recruiting adds assets while compensation raises cost.
- Fee pressure: Rivals offer lower-priced advice and products, pulling down fees. Watch fee-based share of revenue and pricing commentary.
Major Risks
- Market declines: Asset-based fees fall with market values and clients trade less. Watch client assets, net new assets and pre-tax margin.
- Fee compression: Competition from low-cost platforms and robo-advice reduces what clients will pay. Watch fee-based share of revenue and advisor productivity.
- Cash sorting to higher-yield products: When rates are high, clients move cash to higher-yield products, lowering low-cost funding. Watch net interest on client cash and cash balance trends.
- Regulatory and litigation: Sales practice cases and arbitration claims bring fines and costs. Watch legal proceedings and compliance spending.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Full-Service Brokerages Filers in the SEC Record
17 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6211. Their latest fiscal years end in 2025, and together they reported $261.8 billion of revenue. Median revenue growth over the prior year was 19.6%. Median operating margin was 12.9% and median net margin 10.2%. Median total liabilities were 81% of total assets, and 14 of 17 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Morgan Stanley | $70.6 billion | 14.4% | n/a | 23.9% | FY 2025 |
| Galaxy Digital Inc. | $60.4 billion | 41.8% | n/a | -0.4% | FY 2025 |
| Goldman Sachs Group Inc | $58.3 billion | 8.9% | n/a | 29.5% | FY 2025 |
| Blackrock, Inc. | $24.2 billion | 89.3% | 29.1% | 22.9% | FY 2025 |
| Raymond James Financial Inc | $15.9 billion | 6.6% | n/a | 13.4% | FY 2025 |
| Jefferies Financial Group Inc. | $10.8 billion | 2.9% | n/a | 6.3% | FY 2025 |
| Stifel Financial Corp | $6.3 billion | 6.7% | n/a | 10.2% | FY 2025 |
| Robinhood Markets, Inc. | $4.5 billion | 51.6% | n/a | 42.1% | FY 2025 |
The 8 largest of 17 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Full-Service Brokerages guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Full-Service Brokerages industry?
Key performance indicators for the Full-Service Brokerages industry include: Client assets and net new assets, Fee-based share of revenue, Advisor count and productivity, Net interest on client cash, Pre-tax margin. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Full-Service Brokerages industry?
The Full-Service Brokerages industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Full-Service Brokerages industry?
The primary risks for Full-Service Brokerages companies include: Market declines, Fee compression, Cash sorting to higher-yield products, Regulatory and litigation. Investors should assess each company's exposure to these factors and its track record of navigating them.