Five of the 14 robo - advisors in our survey charge service fees on
top of the advisory fee.
That's important because on
top of the advisory fee, investors pay for the management fees (a.k.a. expense ratios) on the ETFs in their portfolio.
Not exact matches
As mutual funds grew in popularity in the 90's many
of these firms used to charge commissions or
advisory fees (usually in excess
of 1 %) and the fund company charged you an expense ratio on
top of that (also 1 % or more).
Then there are
advisory fees on
top of that.
Investors might also pay markups, due when a brokerage sells securities from its inventory at a price higher than the market rate; sales loads, sometimes assessed when you make or sell an investment; surrender charges, imposed when someone pulls out
of an investment early; investment
advisory fees, which are what Mr. Five Percent wanted to charge me; and 401 (k)
fees, additional expenses for operating and administering retirement plans that employees pay on
top of fund management
fees.
But it's a common abuse when it's not disclosed and / or advisers charge additional investment
advisory fees on
top of C - shares
fees.
But it's a common abuse when it's not disclosed, advisers charge additional investment
advisory fees on
top of C - share
fees, and they steer clients only toward C - shares instead
of using More suitable mutual funds.