The financial advisory industry in the United States represents one of the largest professional services sectors in the economy. Using data from SEC and FINRA registrations, this report provides a comprehensive snapshot of the advisory landscape in 2026.
Market Size
The U.S. financial advisory market comprises 113,816 registered professionals operating through 36,846 firms across 54 states and territories. These advisors serve clients in 2,755 cities, making financial advice broadly accessible across the country.
Geographic Distribution
Financial advisors are not evenly distributed. The top three states — New York (23,462), California (16,304), Texas (7,275) — account for a significant share of the national total. This concentration mirrors broader patterns in financial services employment and wealth concentration.
States with the highest average firm AUM tend to be those with major financial centers: Pennsylvania, Massachusetts, California. However, advisors in smaller markets often serve a critical role as the primary source of financial planning for local communities.
Credentials
Professional designations provide an important signal of advisor competence and specialization. The most commonly held credential is CFP, appearing on 0% of advisor profiles. Other widely held designations include CFA (0%), ChFC (0%), PFS (0%).
The presence of credentials like CFP, CFA, and ChFC indicates advisors who have invested significantly in their professional development beyond basic registration requirements.
Compensation Models
How advisors get paid matters. The most common compensation model nationally is Percentage of AUM, reported by 42% of firms. The full breakdown reveals a market in transition:
- Percentage of AUM: 42% of firms
- Subscription fees: 19% of firms
- Performance-based fees: 18% of firms
- Hourly charges: 11% of firms
- Commissions: 1% of firms
The trend toward fee-based and fee-only models reflects growing consumer preference for transparent pricing and fiduciary relationships.
Firm Size
The advisory industry is dominated by smaller firms. Small (2-10) firms make up 53% of the market, Mid (11-50) firms make up 24% of the market, Solo (1) firms make up 14% of the market, Large (50+) firms make up 9% of the market. This distribution underscores the independent nature of financial advice — most advisors operate in small, relationship-driven practices.
Top Markets
The largest advisor markets by city are:
- NEW YORK, NY — 19,803 advisors
- BOSTON, MA — 4,228 advisors
- CHICAGO, IL — 3,944 advisors
- SAN FRANCISCO, CA — 3,797 advisors
- DALLAS, TX — 2,230 advisors
- LOS ANGELES, CA — 2,042 advisors
- HOUSTON, TX — 1,842 advisors
- ATLANTA, GA — 1,557 advisors
- DENVER, CO — 1,269 advisors
- MIAMI, FL — 1,221 advisors
Methodology
This report is based on SEC Investment Adviser Public Disclosure (IAPD) data and FINRA BrokerCheck records as of April 2026. All figures represent registered investment adviser representatives and their affiliated firms. Data was aggregated from individual Form ADV filings and enriched with firm-level data from Form ADV Part 1 and Part 2A filings.
AdvisorOS processes and normalizes this data to create a comprehensive directory of financial advisors. The statistics in this report reflect the state of the data at the time of publication and may differ slightly from real-time counts due to registration changes.
About AdvisorOS
AdvisorOS is a data-driven platform that helps consumers find registered financial advisors and helps advisors grow their practice through enhanced digital presence. Our directory covers 113,816 advisors across 2,755 cities, all sourced from official SEC and FINRA registration data.