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Are Broker-Dealer Firms Underserving the Richer States?

By Rita Raagas De Ramos October 15, 2018

California, Texas, New York, Florida and Illinois are the states that have the highest number of broker-dealer branches, according to self-regulator Finra. California has a big lead among the top five, with 17,061 branches compared with Texas’s 11,009 branches. In terms of the number of firms and headquarters, however, New York tops the list with 1,617 firms and 1,095 branches.

But the top five states with broker-dealer firms, headquarters and branches in 2017 don’t line up with the top five states in terms of median household income or millionaire households per capita.

According to the U.S. Census Bureau, the top five states with the highest median household income are the District of Columbia (2017 median household income of $82,372), Maryland ($80,776), New Jersey ($80,088), Hawaii ($77,765) and Massachusetts ($77,385).

The data is based on a sample and subject to sampling variability, according to the Census Bureau.

According to the Phoenix Wealth and Affluent Monitor U.S. Sizing Report, which is intended to provide estimates of the number of affluent and high net worth households in the country, the top five states with the most number of millionaire households per capita are Maryland (2.263 million households), New Jersey (3.294 million households), Connecticut (1.379 million households), Hawaii (487,708 households) and Alaska (272,496 households). The marketing services and management consulting firm defines millionaire households as those with more than $1 million in investable assets, based on its own research.