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Jul 15, 2009 12:06 pm

I am noticing a trend that some B/D Firms are moving away from the typical haircut business and instead, offering the Advisor 100% payout in exchange for paying the B/D a set monthly affiliation/marketing fee.

  I believe Capital Analysts underwent this change and other B/D firms like Securities Service Network, Harbor Financial all have similar models of this structure.  Appears to be a growing trend.  I believe the B/D's doing this want more consistent income for themselves as opposed to relying on the typical haircut model.   Thoughts on this subject anyone? 
Jul 15, 2009 12:26 pm

I think it’s a great idea a long as your production is high enough, there are obviously benefits at certain production levels.

I.E. Harbor charges $1100/month < $250K. So if I am doing $100K then i am getting a 86.8% payout. But if I do 225 then I am up near 94%.

I also like the idea of access to TDA and 20bps for unlimited trades.

Only fear is if they increase the monthly fees(which they would have to do) but i guess the idea is if you are increasing your production then a small increase every so often wouldn’t be terrible.