Advisor Headcount Trends: Who’s Growing and Who’s Shrinking
Introduction
The financial advisor industry has held steady in total size, but the underlying trends tell a different story. Some channels are shrinking, while others are expanding quickly. For advisors evaluating their next move, understanding these headcount shifts is essential.
Industry-Wide Context
According to FINRA’s 2025 Industry Snapshot, the number of registered representatives has remained relatively stable over the past several years, totaling around 600,000 across the industry (FINRA Snapshot PDF).
The average advisor age remains in the mid-50s, meaning retirements will continue to reshape supply.
Much of the movement is driven by channel migration — advisors leaving W2 models for independent broker-dealers (IBDs) and RIAs.
Wirehouses: Shrinking Headcount
Wirehouses have seen steady headcount declines over the last decade.
Consolidation and retirements are outpacing new trainee growth.
Top advisors continue to leave for independent models with higher payouts and ownership opportunities.
While wirehouses still control significant client assets, their share of total advisors is falling.
Regionals: Modest Growth
Regional firms like RBC, Raymond James, and Janney have shown modest but consistent growth.
They appeal to advisors seeking stability and strong support without the bureaucracy of a wirehouse.
Headcount growth here is slower than the independent channels, but steady.
Independent Broker-Dealers (IBDs): Steady Expansion
IBDs continue to expand as advisors seek more flexibility.
Firms like LPL Financial and Cambridge have added thousands of advisors in the past decade.
The model appeals to those who want independence but still need compliance and back-office support.
RIAs: Fastest-Growing Channel
The RIA channel has been the fastest-growing advisor segment.
Research shows RIAs now account for the largest share of net new advisor growth (Cerulli research).
Growth is fueled by demand for fiduciary advice, equity ownership opportunities, and M&A backed by private equity.
According to DeVoe & Company, RIA M&A activity continues to set records year after year.
Why This Matters for Advisors
Headcount trends don’t just show where advisors are today — they show where the industry is going.
Wirehouses shrinking: Long-term prospects are limited.
Regionals stable: A middle-ground option.
IBDs and RIAs expanding: Independence is clearly gaining momentum.
Conclusion
The numbers are clear: the advisor population is stable overall, but channel shifts are accelerating. Wirehouses are shrinking, regionals are holding steady, IBDs are growing, and RIAs are surging.
Next Step: Don’t just look at your current payout. Consider where the industry is heading, and align your practice with the channel that best supports long-term growth.
