LLPLALPL Financial Holdings Inc.

LPL Financial is the infrastructure behind independent financial advisers: custody, technology and compliance.

The adviser runs their own practice and keeps the client relationship, while the platform supplies what one person cannot build alone: custody, trading systems, reporting and regulatory compliance. The company grows by recruiting whole teams away from large banks and brokerages, where the adviser keeps a smaller share of revenue.

The economics are twofold: a share of platform assets and interest on clients' idle cash, which supplies a noticeable part of profit when rates are high. Risks: falling rates, advisers leaving for competitors with more generous terms, and regulatory claims about oversight of independent practices. The company pays a small dividend and buys back stock.