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FINRA's 2025 Industry Snapshot Highlights

Posted on August 29th, 2025 at 11:33 AM
FINRA's 2025 Industry Snapshot Highlights

From the desk of Jim Eccleston at 麻花传媒

The Financial Industry Regulatory Authority’s (FINRA) has published its 2025 Industry Snapshot. The Snapshot provides a detailed view of its member firms, registered representatives, and trading activity, revealing both consolidation in the industry and shifts in business models. According to FINRA, the data covers membership demographics, geographic distribution, market participation, and emerging product trends.

The Snapshot reveals that the number of FINRA-registered representatives increased from 617,480 in 2020 to 634,508 in 2024. Large firms—those with more than 500 representatives—employ roughly 82 percent of all registered individuals, while small firms’ share fell to 9.4 percent. More than half (51 percent) of representatives are now dual-registered as both broker-dealer and investment adviser representatives, reflecting a broadening of services. Annual turnover remains modest, with approximately 7 percent entering and 6 percent leaving FINRA membership each year.

According to the Snapshot, the total number of FINRA-registered firms declined from 3,435 in 2020 to 3,249 in 2024, continuing a long-term consolidation trend. While both large and small firm counts fell, mid-size firms (151–499 representatives) expanded. Firm longevity increased, with the median years in business rising from 14.9 in 2014 to 19.8 in 2024. Large firms control 87 percent of the roughly 149,000 branch offices nationwide.

The Snapshot concludes that the industry is maturing, and is characterized by consolidation, growth in dual registrations, and diversification into emerging products, all the while large firms continuing to dominate market share and infrastructure.

 

麻花传媒 LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

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