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Strategies & Market Trends : Level II Trading -- Ignore unavailable to you. Want to Upgrade?

To: Dominick who wrote (327)	3/2/1998 7:00:00 PM
From: Jay Morrison	Read Replies (1) \| Respond to of 1086

Dominick, The problem I have with fee based charges is that it is a percentage of the assets. Having been a broker, I can tell you that it is just as easy to allocate the assets of a $100,000 portfolio as it is to allocate the assets for $1 million. The difference is that the first one will pay me $1,000 per year and the second will pay me $10,000 per year. I did not do 10X more work on the second account. If full service brokers believe that they should be compensated on fees, then let them charge by the hour or visit, just like lawyers. The example I used was charging at 1%, but many programs at Merrill Lynch charge 1.5% to 3% annually. That means on a million dollar account in consults (3%) the charge is $30,000 per year to the client and the broker does NOTHING. All of the assets are given to a money manager. Jay