Do agents that sell items like trading platforms and research tools need to be regulated and properly registered as IARs?
Hi @Panicky_scarlet_stor - great question! In general, no. The big question is - do trading platforms or research tools constitute advice related to securities? Trading platforms typically help self-directed investors buy and sell securities more efficiently. I think of services like Fidelity’s Active Trader Pro, which doesn’t tell investors what to buy or sell or when, but instead supplies them with information to make their own choices and perform transactions quickly. Same goes with research tools (e.g. research reports, stock screeners, etc.). As long as these platforms don’t specifically recommend securities transactions or manage portfolios on behalf of investors, they aren’t giving investment advice. Agents would only need to be dual-registered as IARs if they sold or recommended products that did.
Hope this helps!