It's very important to understand LPL's business model to get a full understanding of just how dishonest they are. If you notice, LPL never directly solicits business from individual investors.
They solicit financial advisors with an established clientele to join them. You'll never "work" directly with LPL, your advisor will be part of ABC Capital or another firm who contracts with LPL. They successfully recruit these advisors along with their pre-existing clients by offering them higher percentage of payouts from the fees AND the promise of very minimal oversight. The reason they do this two fold.
First, when you lose money (and you will) or the advisor engages in misconduct, they can shift responsibility and claim the advisor is "independent" and not under their control. This excuse has never worked the countless times they have been sued or in arbitration, but it is a good marketing tool. The second reason is they know the clients who follow their advisor from their previous firm obviously trust that advisor and will probably not question all the "wonderful new opportunities" LPL has to offer. Now the client wont think twice about investing in things they have never heard of such as non-traded REITS, non-traded BDC's and other "alternative investments" with massive expense ratios.
These products pay the advisor and LPL a very large commission but perform very poorly and are usually not sold by traditional brokerage firms. And that is how they make their money. They allow their "independent" advisors to sell risky products with high expense ratios that generate huge commissions to trusting clients.
Period. They profit by betraying your trust like the sociopathic criminals that they are.
Product or Service Mentioned: Lpl Financial Investment Service.
Reason of review: Bad quality.