There are a number of key differences. Some of the main ones are:

• Investment advisors have a fiduciary duty to act in the best interests of
  their clients at all times. Brokerage firms generally are not fiduciaries to
  their customers and therefore do not make decisions that are solely in
  their customers' best interests.



• Investment advisors provide their clients with a Form ADV that describes
  exactly how the investment advisor does business and obtains the client's
  consent to any conflicts of interest that do exist in the investment advisor's
  business. Brokerage firms are not required to provide customers with any
  comparable type of disclosure.



• Investment advisors cannot trade with their clients as principal except in
  extremely limited circumstances. Brokerage firms often earn significant
  undisclosed profits by trading as principal with their customers.