Many broker dealers enter distribution agreements with mutual fund companies to help sell their funds.
In exchange, fund companies pay the BD. They can receive sales loads, trailing payments (rule 12b-1 fees), revenue sharing, sub-accounting fees, platform access fees, sponsorship/training fees, and the list goes on.
That’s just the way this model works. Always has.
In the modern era of discount brokerages, a lot of people (including academics, consumer groups, investment professionals) are uncomfortable with the broker-dealers standing to receive all those forms of compensation when a person could go to a discount brokerage and purchase the same or similar funds without incurring all those direct and indirect fees.
@anothercohen Sorry to hear, keep your head up and hope you have already put together a sound financial plan over the next 12 months and beyond before your next adventure.
Great ad by Blackrock in the @wsj for their Bitcoin etf $IBIT, which has now taken in $5.2B, outpacing everyone else. Impressive how well they market their products.
Want a better life? Control what you allow in.
-Music and podcasts you listen to
-Books you read
-Friends you hang with
-Where you work
-Food you eat
What goes in, comes out. Inputs influence outputs.
You can't 100% control the outcomes, but you do control the inputs.
Air France clerk standing 4 feet from me: “Oh I’m sorry sir. I can’t fix your ticket. Time for my 30 minute mandated cigarette break.”
Delta agent on the other side of the planet: *Rebooks entire flight, through Air France, in under 6 minutes.*