The number of registered representatives overseen by the Financial Industry Regulatory Authority (FINRA) has declined for the fifth year in a row.  According to FINRA's 2021 FINRA Industry Snapshot, the number of firms registered with FINRA has fallen for the seventh consecutive year. 

At the close of 2020, there were 617,549 broker representatives registered with FINRA, decreasing from 624,662 in 2019. The decline in 2020 occurred due to 38,145 left the industry compared to 31,032 who entered it. 

In 2020, 317,936 firms registered only as broker-dealers, while 299,613 were dually registered as broker-dealers and investment advisor representatives. The number of brokerages with FINRA decreased from 3,517 in 2019 to 3,435 in 2020. Brokerages overseen by the regulator slowly but steadily have declined since 2011. Last year 210 firms left the industry. Each category of a brokerage firm - from large to small - declined in 2020 from 2019. 

The brokerage industry's decline results, in part, from the decision of financial professionals to become investment advisors registered with the Securities and Exchange Commission (SEC). The changing regulatory landscape has placed a strain on FINRA's finances, according to news sources. FINRA is projecting a loss this year that will require the industry regulator to remove $187.5 million from its investment reserves, according to FINRA's 2021 budget summary. 

Despite the decline, the brokerage industry continues to produce financially. Aggregate revenue for FIBRA-registered firms totaled $362 billion in 2020. Aggregate expenses in 2020 were $285 billion, resulting in a pretax income of $77 billion.  

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