The broker-dealer landscape is undergoing steady consolidation, even as the total number of registered representatives continues to edge higher, according to FINRA’s 2025 Industry Snapshot.
The data underscores several trends RIAs and wealth advisors should watch closely: growth among large firms, a shrinking field of small broker-dealers, and an ongoing shift toward dual registration.
While the total headcount of registered representatives has risen slightly in each of the past three years, the number of firms employing them has continued to decline. As of year-end 2024, there were 634,508 registered reps across the industry—a modest increase from 612,401 in 2021, which marked a 15-year low. The number has rebounded steadily from the pandemic dip, and is now near 2010 levels, when 628,440 brokers were registered.
However, the number of broker-dealers continues to shrink. FINRA counted just 3,249 member firms in 2024, down from 3,435 in 2020. That contraction is largely occurring among smaller practices. Firms with 150 or fewer registered reps—still the vast majority of BDs at 2,891—are losing market share, while large enterprises with more than 500 reps now account for nearly 82% of the industry’s total rep count. Midsize and small firms share the remaining 18%.
This consolidation is also changing the average firm profile. The typical brokerage firm employed 198 registered reps last year, up from 182 in 2021, continuing a consistent climb in firm size.
For RIAs and hybrid advisors, the dual-registration trend is particularly significant. As of 2024, 51% of FINRA-registered brokers—323,039 individuals—were also registered investment adviser representatives. Meanwhile, 311,469 operated solely as brokers, and 89,223 were registered only as investment advisers. This marks a continued shift away from the broker-only model, as more professionals operate under both fiduciary and suitability standards.
Taken together, the data reinforces a long-term reshaping of the advice industry. Larger firms continue to dominate headcount, and dual registration remains on the rise. For independent RIAs, that means heightened competition from better-resourced hybrid firms, while broker-dealers must adapt to a marketplace increasingly driven by fiduciary expectations.
