Trade tickets

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Feb 25, 2008 12:52 pm

What do you guys pay per trade ticket?  And how many of you pay them yourself vs. pass them on?

I pay $18 right now per fund trade and do not pass anything along.
Feb 25, 2008 1:46 pm
theironhorse:

What do you guys pay per trade ticket?  And how many of you pay them yourself vs. pass them on?

I pay $18 right now per fund trade and do not pass anything along.
 
$4.95 per trade, and the client is charged (Edward Jones).
Feb 25, 2008 2:29 pm

thanks Broker24, lol.  I know the Jones system, been there.  Guess I should have specified independent reps.

Feb 25, 2008 4:30 pm

$15, and I eat the charge

Feb 25, 2008 4:50 pm

$9-18..I eat the charge per $2000 plus transactions

Feb 25, 2008 4:53 pm

OK, I have to ask.  I don't know anything about ticket charges outside EDJ.  Do all of your trades generate a ticket charge or are there some that are exempt?  If you're in a busy office with a lot of trade activity and you have say, 200 trades a month, you're talking about some serious outlay of cash!  $3000 for the horse and $3600 for EDJ4now.  Doesn't that seriously cut into your payout?     

Feb 25, 2008 5:18 pm

all trades held in a brokerage account generate tickets for me.  direct to funds do not.  some fee accounts do, depending on the fund family and whether it is a NON-fee family or not.  i clear through National, so one example is Fidelity-in my fee accounts i can buy/sell with no charges there.  but if i buy/sell a load waived A share in that same account with an American fund, it is $18.

Spiff-it was a big shock to me when i left Jones.  I had 5-6 SIMPLE's in brokerage accounts where employees were making $50/month contributions and i was looking at $18 trade costs per $50 fund purchase, lol.
Feb 26, 2008 9:49 am
theironhorse:

all trades held in a brokerage account generate tickets for me.  direct to funds do not.  some fee accounts do, depending on the fund family and whether it is a NON-fee family or not.  i clear through National, so one example is Fidelity-in my fee accounts i can buy/sell with no charges there.  but if i buy/sell a load waived A share in that same account with an American fund, it is $18.

Spiff-it was a big shock to me when i left Jones.  I had 5-6 SIMPLE's in brokerage accounts where employees were making $50/month contributions and i was looking at $18 trade costs per $50 fund purchase, lol.
 
Wow, I guess the recruiter didn't mention that.. lol
 
That is seriously something I never thought about.. I guess in the case of the SIMPLE ira you moved that to a fund family? That would reduce your trade cost??
 
Miss J
Feb 26, 2008 9:59 am

All my trades in a brokerage account have a ticket charge, systematics only get charged the first time.  If someone has a mutual fund only account, it makes no sense for me to have it in a brokerage account, which is a big change from how I did business at EDJ.  Now most of my non-stock biz is at the fund company, unless there is a good reason we need a brokerage account, like an ACAT from EDJ with multiple families, for example. 

 
For my fee accounts, some no loads are no ticket charge, for others I think it is around $10.  Individual bonds are $40 or $50, stocks are somewhere inbetween.  All ticket charges in my fee accounts get passed on to the client.  I was concerned about this at first, but not one client has complained about the nickel and dime charges like I thought they would.
 
Once you make the transistion to fund held as opposed to brokerage, ticket charges aren't really that big of a deal.  You just have to make that adjustment, or they will eat you alive.  On stocks, there isn't really much you can do, but at least you get a commission to cover the ticket charge. 
Feb 26, 2008 10:26 am

I moved to LPL from Jones 10 months ago--I expected the trade tickets--believe it or not when I started at Jones--we had trade tickets too--but they went away in 1993.  But it is the cost of doing business.  At LPL trade plus funds (Van Kampen, Alliance Bernstein, Columbia, DWS, Hartford, MFS, Oppenheimer, Putnam) there is no ticket charge...Sponsor Funds (AIM, Federated, Fidelity Advisor, Franklin Templeton, Goldman Sachs, John Hancock, Lord Abbett.., to name some of them) there is a ticket charge of $10...other approved funds in which there are hundreds of fund families (Bear Sterns, American Funds, Blackrock, Catholic Funds, GE, Janus, Prudent, Rydex---ect..,) Carry a ticket charge of $35.  Stocks have an $15 ticket Charge...There is no ticket charges for exchanges or direct business through the mutual fund companies.  We do keep cost basis on all funds, even no-loads unlike Edward Jones...At Jones you could sell AIM but they would not keep cost basis for you.  So if you like doing everything though the brokerage like American Funds--it could cost you more to do it this way...That is why if I have a client that had nothing but American Funds in a IRA---I would move them from the brokerage back to the fund company if I was thinking that some time in the future I was going to leave...The client would pay an IRA fee of only $10 instead of $40 and your transfer hassels and future cost would be so much less.  At Jones it is easy to transfer from the brokerage back to the fund company...that way when you transfer the person to say a indy firm---there is no transfer fee---only change of dealer form---no ticket charges since all tickets are done at the fund company and in most cases you can do those trades directly with the fund company on-line...you can also set up ACH with the fund company and the client bank.

I have to amit Jones has a simple simple system---you can link eveything to an account but here you have to have outside accounts, brokerage accounts, fee based accounts ect.  Not to mention the record keeping requirements are more here...that being said I do like the freedom to pick from a lot more mutual funds---and believe it or not we have a much much larger bond inventory here than I ever saw at Jones. 

Feb 26, 2008 10:29 am

Sorry, the word is admit!

Feb 26, 2008 11:36 am

[quote=Roadhardand believe it or not we have a much much larger bond inventory here than I ever saw at Jones. 


[/quote]
 
Well, it couldn't be much smaller!  I think the problem in the Jones sytem is that since the Bond Desk doesn't trade for themselves, they only buy bonds that they know we can sell quickly and that will likely not blow up on a client (i.e. highly rated corps/struct, munis, govies, etc.).   It's good because we can trust most of what is in inventory, but the downside is often lack of inventory.
Feb 26, 2008 2:09 pm

Lpl does not have a bond inventory. What brokers see are street offers. Ticket charges are $35 , not including trading desk haircuts. Just wanted to clarify.

Feb 26, 2008 2:59 pm

Jeno1000 is correct, I'm sorry if I mislead anyone--but what we can get are on the system and it is hugh amount--plus we have the AAA, AA, A, BBB, BB, B bonds -- buy the way LPL doesn't trade bonds for themselves either.  Thanks for the correction Jeno1000

Feb 26, 2008 3:11 pm

So, EDJ protects it's clients by limiting what the FAs have access to in our inventory.  Like B24 said before, we aren't going to blow up anyone's account selling the bonds Jones has for us. 

 
BUT, at LPL, you have the freedom to blow up client's bond portfolio's by purchasing whatever kind of bonds you want.  No limits on quality, rating, etc.  You see it you buy it.  
Feb 26, 2008 3:53 pm

OR, maybe EDJ is protecting it's clients FROM it's FAs. It depends on how you look at it.

Feb 26, 2008 3:57 pm

I believe Jones had a huge issue that they wrote blow up in their face a while back.

Ask some of the ol' timers' about that....
 
But honestly,  what are the odds of a 40 year AAA rated insured bond blowing up????........  I guess we will answer that in.... well.... 40 years now won't we.  I mean honestly, everyone can use a little 40 year bond in their portfolio..... right????..... Aren't they still teaching that at KFC... I mean KY Jell...  I mean KYC class.
 
You know kids drown in the "kiddie pool" every year,  and just because you are in the kiddie pool at Jones does not mean bad things can't happen.... speaking of, how are those countrywide bonds doing anyway.... I am glad I did not sell any of that crap to my clients.  Well, I guess that is what happens in the "kiddie pool"; sometimes you get a "floater"  or two if you know what I mean.
Feb 26, 2008 4:04 pm

Touche!

 




Ballwin bonds.  More than 30 years ago.  Ballwin went out of business and Jones was left holding the bag.  Jones made the clients whole BTW.  If that would have happend with LPL, who would have been left holding the bag?
 
Feb 26, 2008 5:01 pm
DRAPALA:

OR, maybe EDJ is protecting it's clients FROM it's FAs. It depends on how you look at it.

 

 
That may actually be true.  However, let's not forget how many indy's are former EDJ advisors.  Going indy doesn't magically make you smarter...
Feb 26, 2008 5:05 pm
doneWjones:

I believe Jones had a huge issue that they wrote blow up in their face a while back.

Ask some of the ol' timers' about that....
 
But honestly,  what are the odds of a 40 year AAA rated insured bond blowing up????........  I guess we will answer that in.... well.... 40 years now won't we.  I mean honestly, everyone can use a little 40 year bond in their portfolio..... right????..... Aren't they still teaching that at KFC... I mean KY Jell...  I mean KYC class.
 
You know kids drown in the "kiddie pool" every year,  and just because you are in the kiddie pool at Jones does not mean bad things can't happen.... speaking of, how are those countrywide bonds doing anyway.... I am glad I did not sell any of that crap to my clients.  Well, I guess that is what happens in the "kiddie pool"; sometimes you get a "floater"  or two if you know what I mean.
 
It's funny how so many people think that we just stuff porfolios with 40 year bonds (or 30 or whatever).  I guess I would have to ask - at ANY firm, what is the easiest  way to get brokers started?  Selling highly rated long bonds, solid stock picks, quality MFD's, etc.  This whole long-bond thing at Jones is really just the get-you-started stuff.  If an advisor can't move past that after a year or so in the business, it's not Jones' fault.