Affluent investors more fickle, says survey

Loyalty to a single brokerage firm decreases as investors’ wealth increases, according to a new survey.

Loyalty to a single brokerage firm decreases as investors’ wealth increases, according to a new survey.
While 39% of investors with less than $500,000 in assets are loyal to only one firm, only 31% of investors with more than that amount in assets have a relationship with just one broker, according to market research conducted by Cogent Research of Cambridge, Mass.
Among the 4,000 affluent Americans with more than $100,000 to invest surveyed by Cogent, 35% are currently working with two brokerage firms, and another 35% have relationships with three or more brokerage firms.
Only 30% of investors surveyed with between $100,000 to $500,000 to invest worked with three or more brokerage firms, contrasted with 38% among those with $500,000 to $2 million to invest, according to the survey.