Outside brokerage accts -- charges
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QUESTION: I am interested in knowing, does your firm charges you a fee if you insist on maintaining an outside brokerage account.
The firm with which I'm affiliated has a policy of charging a $100 fee for each outside brokerage account I maintain, e.g., at E*Trade. This fee supposedly represents the extra cost for monitoring the outside brokerage account; but the fee would be waived if I instead transfer the funds to the firm with which I'm affiliated because my activity can supposedly be easier monitored. Thanks,My firm doesn’t charge a fee because I’m not given a choice. All my accounts have to be with my b/d end of story.
Didn’t I answer this question yesterday?
The answer is: Get over it. Consider yourself lucky to have the chance for an outside account. Either compliance had to set up a data feed with e*trade to get your transactions electronically (costs money), or they have to go line by line through your statements and manually enter your buy of 5 shares of Disney stock. In my opinion - $100 is cheap. Both of these problems can be avoided by the firm if they made you have an account at your B/D.[quote=Newdog]QUESTION: I am interested in knowing, does your firm charges you a fee if you insist on maintaining an outside brokerage account.
The firm with which I'm affiliated has a policy of charging a $100 fee for each outside brokerage account I maintain, e.g., at E*Trade. This fee supposedly represents the extra cost for monitoring the outside brokerage account; but the fee would be waived if I instead transfer the funds to the firm with which I'm affiliated because my activity can supposedly be easier monitored. Thanks,[/quote] The easy way around these hoops is to just set the brokerage account up with your money but title it in a client's name and just reimburse them for the capital gains and dividends that they'll be charged taxes on. Also you can offer to let them add their money to the etrade account as well (afterall it's in their name). The typical arrangement in these situations is that the client keeps the first 4% of the profits you earn trading their money, and you will receive 20% of the profits earned over the first 4%. Just be sure you don't put this arrangement in writing, rather stress that it's a "handshake agreement among gentlemen." The client will be impressed with your condour.[quote=BerkshireBull][quote=Newdog]QUESTION: I am interested in knowing, does your firm charges you a fee if you insist on maintaining an outside brokerage account.
The firm with which I'm affiliated has a policy of charging a $100 fee for each outside brokerage account I maintain, e.g., at E*Trade. This fee supposedly represents the extra cost for monitoring the outside brokerage account; but the fee would be waived if I instead transfer the funds to the firm with which I'm affiliated because my activity can supposedly be easier monitored. Thanks,[/quote] The easy way around these hoops is to just set the brokerage account up with your money but title it in a client's name and just reimburse them for the capital gains and dividends that they'll be charged taxes on. Also you can offer to let them add their money to the etrade account as well (afterall it's in their name). The typical arrangement in these situations is that the client keeps the first 4% of the profits you earn trading their money, and you will receive 20% of the profits earned over the first 4%. Just be sure you don't put this arrangement in writing, rather stress that it's a "handshake agreement among gentlemen." The client will be impressed with your condour.[/quote] I just hope people don't think your serious, lol.Handshake and a phone call...Isn't that the Jones model?The easy way around these hoops is to just set the brokerage account up with your money but title it in a client’s name and just reimburse them for the capital gains and dividends that they’ll be charged taxes on. Also you can offer to let them add their money to the etrade account as well (afterall it’s in their name). The typical arrangement in these situations is that the client keeps the first 4% of the profits you earn trading their money, and you will receive 20% of the profits earned over the first 4%. Just be sure you don’t put this arrangement in writing, rather stress that it’s a “handshake agreement among gentlemen.” The client will be impressed with your condour.