Customers Need to be Mindful of Discount Brokers Pushing Pricier Services- Part 2

Posted on January 24th, 2018 at 4:08 PM
Customers Need to be Mindful of Discount Brokers Pushing Pricier Services- Part 2

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the second in a series of posts to discuss why customers must be cautious when a discount broker pushes pricier services for investments. Three of the largest discount brokers by assets include Charles Schwab Corporation, Fidelity Investments, and TD Ameritrade Holdings, Corporation.

According to a recent Wall Street Journal article. even though discount brokerage firms are recognized for bringing low-cost investments to their customers, it is evident from reviews by former employees that these firms encourage brokers to sell products that are more lucrative both for the firm and for the broker.

Furthermore, although discount brokerage firms insist that they have extensive policies and procedures designed to prevent brokers from unduly pushing products or services, former employees point to the fact that firms incentivize brokers for referring clients to independent investment advisers. Discount brokerage firms receive up to .25% annually on assets committed by their referrals.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

Return to Archive

TESTIMONIALS

Previous
Next

If you are being bothered by the Regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

June 14, 2024
Wells Fargo Fires Employees for Faking Work

Wells Fargo & Co. recently terminated over a dozen employees following an investigation into allegations of fake work activities.

June 13, 2024
FINRA Struggles to Revise Outside Business Rules

The Financial Industry Regulatory Authority’s (FINRA) attempt to update its rules on advisors’ outside business activities has stalled, according to Robert Colby, FINRA's chief legal officer.

June 12, 2024
Tax Court Denies Madoff Victims $8.2 Million Deduction

Victims of Bernie Madoff's Ponzi scheme, Christopher and Silvana Pascucci, cannot claim an $8.2 million tax deduction for their investment in life insurance premiums.