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what’s the typical breakdown for a new piece of business? For simplicity, a \$1,000,000.00 sale… what’s the typical fee paid to the firm and what percentage of that goes into an FA’s pocket?

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.

successmagnet:

Closer - 44. What’s BPS?

Basis points. Often referred to as 'BiPs'.

100 bps=1.00%.
50 bps=.50%
1 bp=.01%

Sorry guys.

[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?