An investment account in which the advisor's compensation is from trading commissions or
trailer fee commissions paid from a mutual fund.
Dominion Lending Centres mortgage professionals who sell this product to their clients earn an upfront commission, and also get paid
a trailer fee commission as long as the HELOC is being used.
Not exact matches
A
trailer fee is a
commission a mutual fund company pays to an adviser for selling its funds.
For many years now, critics of
trailer fees have been saying advisers are more likely to put clients into funds that offer attractive
commissions over ones that don't.
That's because
trailer fees and
commissions don't come directly out of pocket, so many investors are none the wiser to the real cost of advice.
Ultimately, they get to buy yachts because they're great salesmen, who have perfected the art and science of extracting trading
fees, spreads,
commissions, service charges,
trailer fees, expense ratios, administration
fees, you get the idea.
Advisers who get a
trailer fee will generally suggest investment which pays
commission as opposed to investments which don't generate
commission.
Is it because it pays better
commissions and / or
trailer fees?
The
trailer fee is also known as a «
trailer commission.»
Trailer fees cover the expenses and
commissions for the professional advisor.
Because they are traded on exchanges, investors often need to pay trading
fees, and Gosal said that some ETFs are now adding
commissions, known as
trailer fees, of up to 0.75 per cent.
If you're a do - it - yourself investor buying mutual funds in a discount brokerage, you should buy «D - series» mutual funds with reduced trailing
commissions, or mutual funds offered by providers that don't include
trailer fees at all (such as Leith Wheeler, Mawer and Steadyhand).
A: A
trailer fee, or trailing
commission, is designed to pay advisors for the ongoing service they provide their clients.
While this is currently limited to mutual fund
trailers and DSC
fees, there is no structural difference with life insurance
commissions.
The inescapable conclusion of the OSC
commissioned Cumming Report found that embedded compensation in mutual funds — also known as
trailer fees — skew the flows into and out of those funds.
All too often the
trailer fees turn out to be simply a
commission for selling mutual funds and not fair compensation for providing competent financial planning.
I'd be very interested in having a DIY IPS, I think this would be a very valuable service to offer some value - add
fee only services for DIY investors who need a little bit of advisor help for planning purposes but still want to manage investments themselves and not pay an annual
fee or
trailer commission.
The term wrap account often is used to describe an arrangement between a client and the client's dealer whereby the dealer agrees to be compensated through a fixed annual
fee from the client (usually calculated as a percentage of the value of the client's account) in lieu of all other forms of compensation including
commissions, service (
trailer)
fees and other
fees.
However, the.5 % to 1 %
trailer fees (
commission) that the financial adviser (fundsellor) is receiving is very, very difficult to justify.
Ergo, there is no such thing as «
trailer fees,» only «
trailer commissions.»
Mawer Balanced fund is more globally diversified than most common 4 index ETF portfolios (Canada, US, Int» l, Bond), has outstanding management, low
fees with no
trailer commissions and perpetually beats blended index ETF portfolios in performance.
And on
commissions, at my firm, the
commission is consistent across all products...
Trailer fees?
Most mutual funds pay a trailing
commission (or
trailer fee) each year to the company that sold you the fund.