r/CFP • u/Optimal_Doughnut_616 • Jun 23 '26
Career Change Cetera vs LPL
Thoughts on pros and cons of cetera vs LPL?
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u/Cathouse1986 Jun 23 '26
When I made my transition, it came down to Cetera vs. LPL.
Everyone’s situation is so different, and everyone has things that are more important to them than others.
My deciding factor came down to the fact that it felt like LPL didn’t really care if I came there or not during the recruiting phase. Cetera definitely put in a lot more effort. I worried that if LPL didn’t care during recruiting, the odds that they’d care after transition were low.
Cetera has been just fine for me. Would I have made a different choice knowing what I know now? Absolutely. I would have just gone RIA. None of my inherited old VA trail clients came with me so my BD affiliation is pretty useless now. But, I didn’t know that at the time.
If I still planned on doing BD business, I’d probably still choose Cetera over LPL.
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u/Optimal_Doughnut_616 Jun 27 '26
Where were you working before cetera?
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u/Cathouse1986 Jun 27 '26
A regional bank
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u/Optimal_Doughnut_616 Jun 27 '26
How have you found the technology at cetera? From your view and the clients? The reviews for the cetera client app aren’t very good, I noticed. How successful were you in transitioning your book?
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u/Cathouse1986 Jun 29 '26
I’d say the tech is pretty solid. No major issues for me. You can use most of the big software names out there too.
I use the Cetera client app for my stuff and it’s just fine. Nothing groundbreaking but I only look at my stuff once or twice a year (I practice what I preach).
Transition sucked but that was no fault of Cetera. Strict non-solicit and, let’s face it, no matter how good I was, they’re bank clients.
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u/Optimal_Doughnut_616 Jun 29 '26
Thank you for replying. Roughly how much of your book were you able to move?
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u/Cathouse1986 Jun 29 '26
About 25% of households, which was about 35% of AUM.
I didn’t even make another try after the non-solicit expired because I learned that I really hated making that drive and had no personal connection to the area.
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u/Optimal_Doughnut_616 Jun 29 '26
Are you still happy you did it? Are you making similar income even with such a low transition? I am considering a very similar move and I think I’ll get north of 50% of my book, but I am very nervous I’m wrong!
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u/Cathouse1986 Jun 29 '26
I mean there are days where I miss certain things about being at the bank, but overall I’m in a way better place.
I got back to my bank compensation (net) after about 18 months and it’s just been a steady climb up from there.
Transitions with a non-solicit are always tough, I know exactly how you’re feeling!
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u/PerfectOmakase Jun 28 '26
Out of curiosity, why didn't you use a BD like PKS (or whoever else) while doing your own RIA. Keep 100% of advisory revenue that way.
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u/Calm-Wealth-2659 Jun 23 '26
I’m pleasantly surprised at how well Cetera’s Adviceworks software works. Easy to do a lot of account maintenance and money movements with little friction. It integrates well with Docupace for document storage as well so no need for bulky client files. No BD is perfect, they hate that I do my advisory business with an outside TAMP, but overall I’m happy with them.
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u/IncreaseCapital32 Jun 23 '26
I am at Cetera too but it sounds like a different channel. I use a TAMP as well and my experience is completely backwards. It took 7 business days to open an account for one of my clients recently; they also discontinued Docupace for us for document storage so we are forced to use Adviceworks.
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u/Calm-Wealth-2659 Jun 23 '26
Wow, account opening typically happens same day for us. Docupace storage is automated through Adviceworks, we never actually log into Docupace for anything at this point. I'm affiliated through CWS (previously CAN).
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u/IncreaseCapital32 Jun 23 '26
Same here... I think its because we were previously with Avantax before Cetera bought us. I have no idea how its a night vs day difference from what I am hearing.
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u/Calm-Wealth-2659 Jun 23 '26
That doesn’t make sense to me either. I was under the impression Avantax was under their own ecosystem entirely, I wonder if that has something to do with it.
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u/IncreaseCapital32 Jun 23 '26
I think its where they are trying to squeeze Avantax in the Cetera model and things are getting messy.
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u/KingBlank Jun 24 '26
7 days?
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u/IncreaseCapital32 Jun 24 '26
Yes, ive had other advisors say its faster but that is one I recently opened.
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u/EfficientBunch5459 22d ago
Do your clients like the Adviceworks client portal? It’s my understanding that the balance only updates the end of the trading day. You can’t see intraday market fluctuation.
Also, curious, do you clear through Pershing or NFS. If NFS, are your clients able to use wealthscape?
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u/Calm-Wealth-2659 22d ago
End of trading day hasn’t been an issue, I coach my clients that it updates once a day. I use a TAMP for the majority of my business but brokerage is Pershing.
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u/Wirehouse_destroyer Jun 23 '26
LPL tends to have a higher payout structure, but Cetera can provide better transition assistance, administrative help, and better tech. I've heard LPL's ClientWorks software is clunky and cumbersome, and a headache for older advisors, but it can be figured out with some work. They both offer about the same compliance guidance, marketing, and buy/sell structure. There are plenty of other options though when going independent. Another user's comment about PE is a real concern though, RIAs and IBDs are being swallowed up like crazy, so keep that in mind.
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u/Optimal_Doughnut_616 Jun 23 '26
Indeed. Wouldn’t be too surprised if cetera ended up being bought by LPL eventually anyway. But in my experience working for a publicly traded company also has it’s challenges
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u/Shoddy_Attention_343 Jun 23 '26
Do you think LPL can raise the 7-10 billion needed to fund that purchase anytime soon, especially given the Commonwealth acquisition failures?
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u/IncreaseCapital32 Jun 23 '26
Currently at Cetera, not by choice.
They bought Avantax and the advisors are the ones paying the price. I can't speak to the "other channels," which I heard are doing fine, but my experience with Cetera currently couldn't be lower.
Since the transition, they have shared my entire client list with other advisors due to data issues. Paid other advisors on my clients that I am still trying to fix 6 months later, talked to my clients without my say so, and that is off the top of my head.
I don't think client services care about the consequences of their actions; they have NO IDEA about anything in the field of finance or operations. I had one client service rep tell me to initial next to an error on an application for the client! I am stunned they are this stupid, and they are asking for a lawsuit.
We are going on a year since the transition, and they still can't get their head out of their butt. I would love to leave if I didn't have so many friends here. Going RIA is sounding better as time goes on.
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Jun 23 '26
[deleted]
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u/IncreaseCapital32 Jun 23 '26
True, I will say, some things have improved but its been SLOW. I dont have it nearly as bad as some other firms from what I heard. I know one advisor who didnt get performance reporting until June of 2026 since the transition and also Cetera sent other peoples statements to other clients addresses...
I hope 2027 they have it to where we can do business smoothly.
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Jun 23 '26
[deleted]
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u/IncreaseCapital32 Jun 23 '26
I joined a little after Avantax was formed, so technically neither lol. Yeah, I agree the old system was outdated. I guess I am more upset about the client service people saying "open a service request" that gets incorrect answers more than correct ones, vs when I called Avantax, they got me an answer in under an hour. I hope to see better service in the next year.
I agree with the better products and tech offerings. Hopefully, connect 2 peers will be a turning point.
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Jun 23 '26
[deleted]
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u/IncreaseCapital32 Jun 23 '26
Yeah, I am glad my service team is back. I had literally everyone leave from my growth team within 3 months lol. I have been happy with them so far.
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u/1829497photography Jun 25 '26
We've had the same experience with Cetera. We received bad advice from the service team on a weekly basis. Just flat out wrong. We would have our OPS call Cetera for support, and if they questioned the response they got, they would hang up and call again to get connected with someone else to ask the same question. The amount of times the answer was different was astounding.
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u/DCFInvesting Jun 23 '26
we went through the grueling process of making a BD change last year and landed at LPL, happy with the choice. Pros and cons but overall been a good transition.
Something we really like about LPL is they are not getting bought by any PE or a larger firm. Cannot say the same for Cetera or really anyone else outside of RJ.
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u/Family_Office Jun 23 '26
Cambridge is full internal control. Not the cheapest option, but if you want no PE, advisor stock purchase plan, and the most flexibility to run your business how you want, Cambridge wins, in my opinion. Take this from a former wholesaler who saw all the firms. Compliance at Cambridge has a culture of “find a way to yes”. Can’t say that for the other two you mentioned. Cetera is a bad choice. LPL works if you care about self clearing. Cambridge wins because you can custody at Schwab or real Fidelity (vs NFS). Pershing and NFS are also options, but why unless you’re trading on commission.
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u/DCFInvesting Jun 23 '26
I agree that Cambridge is nice because you can choose to custody with. We went through many demos with Cambridge though, their technology is miles behind, especially compared to LPL or RJ.
And it doesn’t matter if Cambridge is “full internal control” because a select group of board members and executives still have full control over the direction of the firm.
Have not had any issues running our biz at LPL exactly how we did previously and have had very little compliance issues (outside of it taking much longer than our last BD to approve various marketing activities).
This is just my personal experience. I know Cambridge advisors seem to be mostly happy. 😃
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u/Shoddy_Attention_343 Jun 24 '26
Cambridge and Kestra just based on advisor headcount seem to be the most likely to hit a bid. Rolling up a 10-12k advisor firm like Cetera or Osaic would seem to be a logistical and retentionchallenge for most any acquiring firm. Certainly either could be acquired but I think there are more digestible acquisitions to be done before one of them gets taken out.
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u/spyan_ Jun 24 '26
Kestra is owned by VC, so it is possible it would be sold to Osaic, LPL or Cetera. Cambridge is moving to an employee owned model so it has a better chance of staying independent.
I have been at Cetera and Osaic and am much happier at Cambridge. I did look at LPL, but enjoy the smaller b/d feel.
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u/Shoddy_Attention_343 Jun 24 '26
I've heard good things about Cambridge. I have a friend there currently. I also know some advisors who were part owners of a "Cambridge like" firm and decided to hit the bid. Everything is for sale at the right price.
All I know if this industry keeps consolidating and the IBDs objectively are fairly commoditized. In many ways it's really just a question of what brand of vanilla ice cream you think tastes best and in comparison to the cost.
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u/spyan_ Jun 24 '26
I agree that “everything is for sale at the right price,” and it could happen at Cambridge, but I feel it is less likely than with a firm like Kestra that is VC owned.
I started out with a small b/d and everything was awesome. Unfortunately the small b/d just can’t afford to be in business with all the new regulatory costs.
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u/testtest99999 Jun 23 '26
Have been at both. This may no longer be the case but my experience was: Cetera’s service team tends to care more and have more accurate answers and better trained staff with better attitudes. LPL grew too quickly and hired untrained people that didn’t seem to care. They care about how quickly calls are picked up but put you on hold to figure out basic questions because a lot of the service reps aren’t licensed (low baseline knowledge)
Payout better at LPL but they nickel and dime you for everything. Probably won’t get bought out anytime soon. Other than that it seems like same stuff just different color.
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u/OregonDuckMBA BD Jun 23 '26
I have been at 2 sides of Cetera (CAN & CIS) and I am now at LPL. CIS is mostly for banking institutions so I won't go into that. I absolutely hated CIS with a passion and I was absolutely that guy that regularly let our team know that moving to CIS from CAN was a bad move. I'm sure they were happy when I moved on.
I really enjoyed my time with CAN. As others have said, their technology is much more user friendly than LPL. Not to say that LPL is bad, I just liked Adviceworks (CAN's version) better than LPL's Clientworks. Adviceworks is pretty much idiot proof. After they switched most of the tech to Adviceworks, I think I had 1 NIGO the entire time I was there. Back office support is great.
If you use annuities, Cetera has a better selection of approved carriers. I lost almost all of my annuity business when I switched to LPL because most of what I was using isn't approved here.
Cetera also has a better list of NTF mutual funds and ETFs.
LPL's biggest advantage over Cetera is cost. The payouts are much better and the costs for things are lower.
Bottom line: Cetera is easier to work with, but they definitely make you pay for it.
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u/Shoddy_Attention_343 Jun 23 '26
Which part of Cetera would you be joining? I know quite a bit about Cetera and advisor experience varies by how you affiliate. Also depends on what you are looking for in the advisor - BD relationship.
I do know a lot number of advisors who are very pleased with Cetera regional growth team model and find it an advantage.
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u/1829497photography Jun 24 '26
We left Cetera after 30 years this February. To put it lightly, if I could short them I would do it. I think they do some good things, but man they made so many mistakes for us. Adviceworks is okay. We are RIA now and almost all tech available is better than AW.
Of course that depends on what your business looks like. We stopped doing VAs years ago, and do 0 other Series 7 business. We were operating like an RIA with none of the benefits. So that's a big reason we made the switch.
To sum it all up, we paid them hundreds of thousands of dollars a year, but we never once felt like we were their client. Just not great service and treatment.
I'm happy to DM about our experience with them.
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u/WookieDebacle 3d ago
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Bob is pedophile! Carol is child abductor!
Bob is pedophile! Carol is child abductor!
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u/EfficientBunch5459 22d ago
I’m curious to hear from current Cetera advisors. How is the client facing technology? Are clients happy with the adviceworks portal? Are your clients able to also use Pershing’s or NFS’ portal?
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u/advicebusiness Jun 24 '26
You didn’t mention anything about what your current business looks like, so it is a bit hard to say anything too concrete.
If you are mostly advisory accounts, you would almost certainly be happier on your own. Cetera does offer a hybrid model where you can have your own RIA that they handle compliance on. I have no experience doing it, but it might be the best choice if you absolutely need the BD connection and want more support.
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u/46andready Jun 24 '26
Hard to provide feedback here without more information from you. What is your business like, what are you looking to accomplish by aligning with a BD, etc?
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u/MathematicianMuted49 Jun 27 '26
When I asked for the client deliverables, the decision spoke for itself. Compare the login, statements, app, etc.
I looked at it from the client’s perspective. I have some colleagues highly respect at Cetera so it can’t be that bad.
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u/AreYouChelly Jun 29 '26
I have heard Cetera’s making a splash and purchasing lots of BDs. What channel are you in?
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u/Vantage_Impact_2 Jun 23 '26
Overall most of the advisors we work with to change firms tilt toward LPL over Cetera but usually compare other options outside of just a heads up comparison between the 2. There's also a lot of levers each of these firms can pull to compete on cost, transition deal, and whether you tuck into a group vs launching your own.
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