I am currently in the USA where I use a large low cost brokerage.
I get a call from them about once a year.
When they call it always seems they try to sell me on using an independent fee based advisor, (fee based on size of assets.) Do all of these large low cost brokerages do this?
It's starting to annoy me, to the extent that I may move the account to another brokerage in the future.
Brokerages - fee based advisors
- InvestorNewb
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Re: Brokerages - fee based advisors
I'm with Qtrade and they never call me. If you tell then no and they continue to call once a year, I agree that would annoy me too.
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)
Re: Brokerages - fee based advisors
These companies are not altruistic. What is in it for them to recommend an independant advisoer? Is what they are recommending a sister company or subsidiary? Or do they think the advisor will recommend products within your account that are more lucrative for them?Danielle105 wrote: ↑01 Oct 2017 12:10 I am currently in the USA where I use a large low cost brokerage.
I get a call from them about once a year.
When they call it always seems they try to sell me on using an independent fee based advisor, (fee based on size of assets.) Do all of these large low cost brokerages do this?
It's starting to annoy me, to the extent that I may move the account to another brokerage in the future.
I should point out this is a Canadian forum.
You can asked to be placed on their do not solicit list if you are otherwise happy with their services.
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Re: Brokerages - fee based advisors
A small portion of the advisors fee, does go back to the brokerage.
Re: Brokerages - fee based advisors
Thank you for posting this.
I run a portion of my investment management business in this manner - using the client's discount brokerage account with a Trading Authority - and I suspect I will have to address the issue of the brokerages wanting a cut of my advisory fees at some point.
I would appreciate learning more about the mechanics of this scheme from anybody who is familiar with this practice.
I run a portion of my investment management business in this manner - using the client's discount brokerage account with a Trading Authority - and I suspect I will have to address the issue of the brokerages wanting a cut of my advisory fees at some point.
I would appreciate learning more about the mechanics of this scheme from anybody who is familiar with this practice.
Re: Brokerages - fee based advisors
Raymond James fined $125,000 for overcharging fee-based clients
Behind G&M paywall
Behind G&M paywall
In 2016, a number of subsidiaries of Bank of Montreal, Canadian Imperial Bank of Commerce and Scotia Capital Inc. were hit with similar compliance issues that resulted in no-contest settlements. In all four cases, the majority of clients were fee-based investors. RBC paid more than $22-million in compensation to investors, BMO paid almost $50-million, CIBC paid out $73-million and Scotia Capital paid approximately $20-million to investors.
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"The light at the end of the tunnel may be a freight train coming your way" Metallica - No Leaf Clover
Re: Brokerages - fee based advisors
RJ has had a number of brushes and fines.... per Google. Not very comforting for anyone putting their trust in them.
I think most of the big bank ones were related to double dipping of fees in their asset management arms, funds of funds type of thing, incentive pay, etc.
I think most of the big bank ones were related to double dipping of fees in their asset management arms, funds of funds type of thing, incentive pay, etc.
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