The battle for financial advisors has intensified, with firms paying hefty sums to attract and retain top talent. As reported by AdvisorHub, annual reports from LPL Financial, Ameriprise Financial, and Stifel Financial highlight the rising costs of recruiting, as firms navigate an increasingly competitive hiring environment.

LPL Financial, the largest independent brokerage with nearly 29,000 advisors, significantly increased its recruiting efforts in 2024. The firm's forgivable loan total—a key measure of recruiting expenses—jumped 54 percent to $2.81 billion, surpassing even high-paying wirehouses like Wells Fargo Advisors, which last reported $2.16 billion in loans.

Likewise, AdvisorHub reports that Ameriprise Financial, with approximately 10,000 advisors, reported a 10 percent increase in its recruiting loan total, reaching $1.34 billion by the end of 2024. The firm's strategy has been more measured, with annual loan increases primarily offsetting advisor attrition.

Unlike its competitors, Stifel Financial has taken a more restrained approach to recruiting. The firm paid $91.8 million in upfront loans in 2024—a 46 percent drop from the previous year. While Stifel does not disclose its total loan balance, it estimates $683 million in amortizing loans over the next five years, a figure that has remained steady. According to AdvisorHub, the firm acknowledged in its latest earnings report that it may allocate more resources toward recruitment as industry competition intensifies.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.