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How much commission does my broker make?

Jan 09, 2012 by Dee from Santa Monica, CA in  |  Flag
4 Answers  |  5 Followers
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3 votes
Barry Rabinowitz Level 19

Hi: it depends on the firm. For stocks- If it is a full service or discount firm. However, for mutual funds the commission is buried and does not appear on the confirmation. Depending on the dollar investment there will be listed in the prospectus the sales charges. I would not recommend funds with sales chrges- since the fees go to the salesmen and dont ensure performance better then no load or ETF shares.

Comment   |  Flag   |  Jan 09, 2012 from Fort Lauderdale, FL

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2 votes

You should feel comfertable asking that question to him/her. If not, you should find a new advisor.

1 Comment   |  Flag   |  Jan 09, 2012 from Port Washington, NY
Brice Thompson, AWMA, AAMS

I agree with Evan. One thing you should clarify is whether you want to know "how much you are paying for something" or "how much money is my broker making"? Those are two very different questions and many investments have fees that are not required to be disclosed. I would also suggest that investors should focus on "good value or not good value" not "cheap or expensive".

Flag |  Apr 13, 2012 near Columbus, GA

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Ryan Level 19

The commission payout on products can vary dramatically depending on a wide variety of circumstances. Since you know your broker works off of commission sales, you should ask directly what a certain fund, annuity, stock, or bond is being recommended and if it is in your best interest.

Comment   |  Flag   |  Feb 28, 2012 from Gettysburg, PA

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Depends on what he is selling you. Most brokers who position themselves as financial advisors sell mutual fund A shares, which usually pay an upfront commission of around 5.75%.

Comment   |  Flag   |  Feb 24, 2016

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