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  • Attorneys David Meyer and Matthew Wilson have been selected to the list of Super Lawyers since 2011 and 2015 respectively.

  • Attorney David Meyer is a member of the Million Dollar Advocates Forum, an organization recognizing attorneys who have secured million dollar cases.

  • Martindale-Hubbell® Peer Review Ratings™ has recognized attorney David Meyer as an AV Preeminent® attorney in High Ethical Standing.

  • Attorneys David Meyer and Matthew Wilson have received a 10 out of 10 “Superb” rating on Avvo, calculated based on stringent and exhaustive criteria.

  • Attorney David Meyerhas been selected to the list of the Best Lawyers in America® for Mass Tort Litigation / Class Actions – Plaintiffs and Professional Malpractice Law – Plaintiffs every year since 2011.

  • Attorney David Meyer was selected as the 2015 Lawyer of the Year for Professional Malpractice Law – Plaintiffs for Columbus, OH by Best Lawyers®.

  • Meyer Wilson was ranked as a Tier 1 Best Law Firm for both Mass Tort Litigation / Class Actions – Plaintiffs and Professional Malpractice Law – Plaintiffs by U.S. News.

Fee-Only vs. Fee-Based Brokers

The Importance of Knowing How Brokers Earn Their Money

Brokers and financial advisors make money in a number of ways, including:

  • Salary and commissions paid by their firms
  • Hourly or flat-rate fees for their services
  • Third party commissions
  • Or a combination of these sources

Unfortunately, some financial professionals may try to pressure investors into new investments that generate a commission for them (the broker) even when those investments aren’t the best fit for the client. Other fraudsters may try to hide outrageous fees by burying the fee structure in the fine print, or just failing to mention it.

Fee-Only Investment Accounts

The financial industry has been moving toward a fee-only model in recent years. Fee-only accounts are managed by financial advisors that do not accept any fees or commissions based solely on their product sale. These accounts primarily charge a percentage of assets under management, but could also include other methods of charging clients, such as:

  • Flat retainer
  • Hourly rate
  • Charge specific to the task at hand

Fee-only advisors have fewer inherent conflicts of interest and they generally provide more comprehensive advice.

Fee-Based Brokers

Commission-based brokers often take offense at this distinction. Blurring the difference, they created the category “fee based,” which means they charge a fee in addition to collecting commissions. Study after study shows that even consumers seeking a strictly fee-only advisor find these terms confusing, and can be easily misled.

A fee-only account may not be a right path for everyone. If you’re going to trade only five to seven times per year, it’s probably more economical for you to pay commission, as opposed to paying somebody a percentage of your assets under management.

The Takeaway

The takeaway is that it’s important to know how your broker is getting paid in order to ensure that the fee structure is the best fit for you. You can keep yourself informed by asking your broker directly about fees and commissions, carefully reading through your brokerage agreement, and reviewing your account statements and other documents to monitor fees and commissions.

Need More Information?

Investment misconduct can be complex and confusing. That’s why we’re here to help you. Visit our Common Questions page to find in depth answers directly from our attorneys. Get More Answers
Have You Been a Victim of Investment Fraud?

You trusted your financial advisor with your money, but now you're left wondering what went wrong. If you or a loved one suffered losses because of investment misconduct, Meyer Wilson can step in and fight to recover your losses. The team of investment fraud lawyers at the firm has been helping people like you since 1999 by winning judgments, settlements and verdicts worth hundreds of millions of dollars against brokerage firms, financial advisors and banks.

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