Full Service Broker/Advisor Fees

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Ron Mann
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Full Service Broker/Advisor Fees

Post by Ron Mann »

WHat is the range of trading fees/commissions charged by full-service brokers?
brucecohen
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Re: Full Service Broker/Advisor Fees

Post by brucecohen »

I have no idea, but suspect the "average" commission is now meaningless. AFAIK commissions depend on where the broker stands on the grid, the size of the account and the quality of the client relationship. There is, however, a "minimum" commission set by the firm. That's what my guy said he was charging me when I had a FS account, but I don't remember the amount because it was many years ago.
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Norbert Schlenker
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Re: Full Service Broker/Advisor Fees

Post by Norbert Schlenker »

1-2%, minimum about $200. But if you have to ask, you can't afford it. :rofl:
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Re: Full Service Broker/Advisor Fees

Post by Shine »

My original FSB charged trading fees of around $120 per transaction - both at buy and sell - and additional fees depending on the volume of the trade. Plus an annual RRSP administration fee.

Over the past year my original broker retired and a new adviser was assigned who said that there would be no fees for any transactions - buys or sells or RRSP - but overall annual fees of from 1.2% to 3% depending on the amount of the account. In a .5% to 2% bond/growth market and a negative MMF world this seemed not a wise decision to me.

I chose to move my accounts to a discount broker however a steep learning curve - for me - emerged.
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Re: Full Service Broker/Advisor Fees

Post by CathyF »

If you have a small account and you're only being charged $200, then they're not making any money off you and you may as well stay with them. I presume they hope you'll grow your account so they can rake in the fees. If you have several hundred thousand dollars in your account, and they're charging you 1-2% (or have you invested in mutual funds charging that), then they're making a pile of cash off of you.

If you have even the smallest ability to do your own investing at a discount broker, then take your money and run as fast as you can. It will be the biggest bang-for-the-buck you ever make. It will save you thousands (or even tens of thousands) of dollars per year, for only a few hours effort. It can be as simple as Googling "couch potato portfolio".
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Pickles
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Re: Full Service Broker/Advisor Fees

Post by Pickles »

If they are only charging a trading commission of 1% to 2%, with a $200 minimum as Norbert states, it may be wise to stay with a full service brokerage if you have a large portfoio and don't trade stocks a lot. I understand that bond prices are significantly better at FSB than discount brokerages. At BMOIL, we have "full access" to Nesbitt-Burns bond inventory but I am convinced the prices on the menu are higher.
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Re: Full Service Broker/Advisor Fees

Post by brucecohen »

Pickles wrote:I understand that bond prices are significantly better at FSB than discount brokerages.
That was my experience but it depends largely on your relationship with the individual broker. As I understand it, the bond desk quotes a price to the broker who then marks it up. So the pricing difference reflects how much margin he/she gives up. Also, my FS broker at RBC DS was able to access a wider selection of bonds than TDW offers me as a discount client. I don't know if RBC's discount brokerage can access the same inventory as RBC's DS brokers.
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Re: Full Service Broker/Advisor Fees

Post by schmuck »

I opened an account with Canaccord 13 years ago and negotiated a fee of 1% per transaction with one of their senior brokers while continuing to do most of my trading with TDW discount service.
When my Canaccord broker moved on about 6 years ago, the act was assigned to a new broker who also agreed to the 1%. However, the fees for my infrequent trades always seemed to slightly exceed the the 1% and it would take a reminder to have them adjusted.

Although my Canaccord act turned out to be less than one tenth of the TDW act, I really valued the ability to access the Canaccord research online. However, after not making a single trade in 3 years, I felt guilty enough to finally move all me holdings over to TDW.
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