Advisor Client Fees

Professional Advisors can charge fees to their clients for services rendered using one of the methods described below.

No Fee - An advisor chooses not to charge his or her clients a fee for services rendered.
Client Fees - A calculated fee is automatically billed to the client's account with blanket client authorization. Be aware that client fees are subject to certain caps and limitations.

Advisors can choose one of several methods of calculating client fees:
Annualized Percentage of Net Liquidation Value, with posting frequencies of daily, monthly or quarterly
Annualized Flat fee, with posting frequencies of daily, monthly or quarterly
Percent of Profit and Loss (P&L). The maximum percent of P&L that you can you charge for either period is 35%.
Fee per trade unit - Not available for US or US protectorate legal residents due to regulatory restrictions, with the exception of US commodity-registered advisors, who are allowed a fee-per-trade schedule for futures.
For Forex fee per trade unit, the mark-up is calculated on the second currency of an FX pair, so for example, if a client trades in EUR.USD, the markup is based on the USD and not the EUR.

Invoicing - Advisors can submit electronic invoices for client fees on a monthly or quarterly basis by entering a maximum amount, a maximum percentage of the amount of a client account's net asset value to be invoiced, or both. Invoices can be submitted for up to ten clients at a time, but only one invoice can be submitted per client account per day. Advisors can also upload a .csv file that contains multiple client invoices.

Direct billing - The Advisor does not configure fees in Account Management and bills the client directly. We will not remove funds from the client's account. Note that there is no Direct Billing option on the Configure Fees page in Account Management. If you plan to use direct billing for any client account, then you can either select the No Fee option or don't configure any fees at all in Account Management.

Regardless of the method chosen, advisors determine the fees at the time of the client’s registration and can modify them at any time. Advisor clients are required to acknowledge any fee increase with a signature.

In addition to the advisor client fees specified, we will charge our normal commissions to the client.

Fee Reimbursement

Advisors can reimburse fees to client accounts. Twelve months of fees are eligible for reimbursement, up to a maximum (net of any prior rebate) of 50% of the trailing 12 months. The following additional rules apply to client fee reimbursements:

A rebate of fees increases the fee caps and are reflected as such in reports.
Fee reimbursements are processed as a simultaneous debit to the Advisor Master account and a credit to the client account.
If the Master account does not have the sufficient funds to satisfy the fee reimbursement, the fee reimbursement request will fail.

Advisors can submit and review fee reimbursements on the Client Invoicing page.

Charge Commissions and/or Client Fees to the Advisor Master Account

Advisors can elect to charge commissions as well as minimum monthly fees, IRA account fees and market data and research fees to their own Master account instead of to their client accounts. Advisors can make these elections for individual client accounts on the Configure Fees page.

Client Fee Templates

Client fee schedules are stored as templates. As an advisor, you can configure fees for one or more client accounts, or set up client fee schedules in templates, then assign the templates to client accounts. The use of templates allows you to easily maintain different fee schedules for multiple client accounts.

For more information, see Client Fee Templates.