As a generalization, if it goes into a fee based account, the firm will charge between 75 and 150 BPS, probably toward the lower end due to the size of the account, as a generalization, use 100.  Payout ratio is between 35 and 50% depending on a number of factors, namely your level of production and how many years you've been with the firm.  The average is generally 40%.

So I would say the firm takes in 10,000, you get 4,000.  Now you know why the wires want you to raise 10MM+ annuitized to keep your job...even if you do, you're still only getting paid $40,000.

At least most wirehouses start you on a salary with periodic bonusus to get you started.
success magnet, how old are you? just curious.

Closer - 44. What’s BPS?

Basis point=.01%       100 Basis Points = 1%     10,000BPS=100%

So if the firm grabs 100BPS of the $1,000,000.00 they bring out $10,000.
If you come away with 40% of that you get yourself $4,000.

Pretty darn measly.

Closer - 44. What’s BPS?

Sorry guys.



I hadn’t realized that Closer had already answered.

[quote=Closer]Basis point=.01%       100 Basis Points = 1%     10,000BPS=100%

So if the firm grabs 100BPS of the $1,000,000.00 they bring out $10,000.
If you come away with 40% of that you get yourself $4,000.

Pretty darn measly.
[/quote]



Here’s the deal, 1bp of $1million is $100, 1bp of  $1,000 is $0.1.



So count up your dimes and benjamins.



BTW, this also why bond futures are for $10M since then 1bp == $1000.

We're talking a fee based investment, right? What about $1M in a 3% load mutual fund?