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Raymond James Passport?

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Mar 24, 2008 3:39 am

So we've been looking at RJA, and I read that their non-discretionary wrap program(PassPort) has a wrap fee AND charges a transaction fee for trades?  I think I read $30 for equity trades, $50 for bonds, preferreds, etc.   Anyone have details on their platform?

Mar 24, 2008 12:31 pm

Your info is right.  You can either pay the ticket charges or pass them to the client.  They have a similar program  called Ambassador which allows 50 free trades per year, but the admin fees are higher.  You have to evaluate which one is better for the given client.  Passport usually makes more sense once you the account is over 200-250k.  (Unless there are lots of trades).

Mar 24, 2008 5:44 pm

Systematic trades avoid the $30 charge, except for the first time you buy the fund. This is a way to diversify market timing and avoid the charge on every trade as well.

  Also it can be discounted with advisor discretion. Base fee is 1.75%/year; I always discount it to lower clients' expense.   I use it almost exclusively if you want more details via PM.    
Mar 25, 2008 2:27 am

You should consider Harbor Financials Services (www.harborfs.com).  They clear through RJA but you get a 100% payout (minus a flat monthly fee and the same ticket charges RJFS charges the FA)  You get to keep more of the fees you charge your clients and can afford to discount a bit more if you wish.  PM for more details.

Mar 25, 2008 3:49 pm

Rj also rebates the client any 12b1 fees.

Mar 25, 2008 11:10 pm

really? they rebate the 12b-1?  is that quarterly, and are there any conditions?  (minimums, etc.)

Mar 26, 2008 12:23 am
CutterJon:

really? they rebate the 12b-1?  is that quarterly, and are there any conditions?  (minimums, etc.)

      ... in wrap accounts.  Because..... a) it's required for erisa accounts    b) RJ is not  big enough to offer institutional shares   Full Disclosure, they have the OPTION to rebate 12-b-1's in non-wrap accounts but I doubt anybody is doing so.
Apr 4, 2008 4:33 pm

When I first joined RayJay from Pru, I wondered why they were sending 12B-1’s back to the client.  Then I realized I wasn’t getting paid on them at Pru, Pru kept them.  Better my clients than Pru.

  IndyEDJ