Registered Investment Advisors vs. Brokers

Registered Investment Advisors vs. Brokers

Railroad Street Wealth Management, LLC ("Railroad Street") is an Independent Registered Investment Advisory firm. As a Registered Investment Advisor (RIA) per the Investment Advisers Act of 1940 and State RIA Regulations we are required to act as a fiduciary. We must put your interests above our own and declare any conflicts of interest that may arise. We are not compensated by commission but are paid an advisory fee directly from our clients for advice and service for a percentage of assets under our care. We have no incentive to sell any product over another or trade in client accounts. Railroad Street fully discloses to our clients the fees we earn and will provide quarterly statements that clearly report the fees we receive.  Our only goal when selecting investment vehicles for your investment portfolio is to ensure these products help you achieve results. Railroad Street employs the use of third party custodians for your assets, nothing is held in house. We have limited power over assets held by these custodians. Railroad Street can have funds sent to you via your address of record or have funds electronically sent to like-registered accounts. 

A Broker or Registered Representative, is required only to recommend investments that are "suitable" for you. Brokers can legally put their own interest above yours when recommending investments "suitable" for the situation. Since brokers are paid by commissions on products sold, there is a subtle pressure to execute transactions. Over the last several years many brokers have begun to use titles such as "Investment Advisor" or "Financial Advisor" without accepting the fiduciary duty of a Registered Investment Advisor per the Investment As\dvisers Act of 1940 and State RIA Regulations. Some have no background or training in giving advice other than the sales training they have received. Most merely adhere to the "suitability" doctrine. Financial firms continue to blur the lines between broker-dealers and registered investment advisors by bundling new products like "wrap" or "fee based" platforms.


Railroad Street Wealth Management, LLC ("Railroad Street") is a Registered Investment Advisor ("RIA"), located in the State of Maryland. Railroad Street provides asset management and related services for clients nationally. Railroad Street will file and maintain all applicable licenses as required by the various state securities boards, as applicable. Railroad Street renders individualized responses to persons in a particular state only after complying with all the regulatory requirements, or pursuant to an applicable state exemption or exclusion.

This web site is intended to provide general information about Railroad Street. It is not intended to offer investment advice. Information regarding investment products or services are provided solely to read about our investment philosophy, our strategies and to be able to contact us for further information.

Market data, articles and other content on this web site are based on generally-available information and are believed to be reliable. Railroad Street does not guarantee the accuracy of the information contained in this web site. The information is of a general nature and should not be construed as investment advice.

Railroad Street will provide all prospective clients with a copy of our current Form ADV Part 2A ("Disclosure Brochure") and form ADV Part 2B ("Brochure Supplement") prior to commencing an Advisory relationship. Existing clients will receive a copy on an annual basis. You may Contact Us at to request a hardcopy of our Disclosure Brochure.

If you have any questions regarding Compliance and Regulatory information, please Contact Us at

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