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Payouts and Pricing

At LPL Financial, we continually focus on ways to help improve our advisors’ profitability.
Last year, we increased bonus payouts. As other firms increase fees, LPL Financial has reduced them drastically.

Our advisors have succeeded in growing their fee-based advisory business by more than 300% over the past 5 years. This growth has allowed LPL Financial to once again provide reduced pricing options.

In addition to a significant reduction of transaction fees, LPL Financial will be reimbursing a portion of advisors’ administrative fees on all advisory business.

Representative Payout Rate and Charge:

Security Type

LPL Financial Payout*

Mutual Funds

90-98%

Direct Investments

90-98%

Variable Annuities

90-98%

Unit Trusts

90-98%

Prime Rate Trusts

85%

Closed-End Bond Funds

85%

Stocks, Bonds, Options, Managed Commodity Accounts

76.5% (less clearing costs)

Monthly Fees

  • 1-4 representatives $125 per representative
  • 5-11 representatives $600 per office
  • More than 12 representatives $50 per representative

Advisory Services Payout
Fees on the Strategic Asset Management account are paid out up to 98% after the LPL Financial administrative fee.

Production Bonuses
Incremental production bonuses for individual representatives are earned as follows:

Individual:

$100,000

1% Bonus

$1,000,000

5% Bonus

$200,000

2% Bonus

$2,000,000

6% Bonus

$500,000

3% Bonus

$3,000,000

7% Bonus

$750,000

4% Bonus

$4,000,000

8% Bonus

At the end of the calendar year, branch production bonuses are calculated on incremental dollars as follows:

Branch:

$300,000

1% bonus

$3,000,000

4% Bonus

$500,000

2% bonus

$4,000,000

5% Bonus

$1,000,000

3% bonus

$5,000,000

6% Bonus

The individual bonuses paid during the year are deducted from the branch bonus. If individual bonuses paid exceed the branch bonus, no further bonuses are paid.

Production bonuses are computed on incremental dollars only.
The maximum payout under any scenario is 98%.

General Securities Bonuses
The bonuses on general securities are based on annual individual production in stocks, bonds, and options. Bonuses are awarded retroactively as follows:

Production

Bonus

Payout Level

$0 to $34,999

0%

76.5%

$35,000 to $99,999

1%

77.5%

$100,000 to $149,999

2.5%

79.0%

$150,000 to $249,999

4%

80.5%

$250,000 to $499,999

5.5%

82.0%

$500,000 and over

6.5%

83.0%

Commissions on stock and option trades are based on the published commission schedule and may be discounted up to 50%. The minimum commission is $40. Points on fixed-income trades vary with the particular product and length of maturity.

*Assumes initial payout of 90% plus individual production bonus. Effective 1/1/07.

Clearing and Brokerage Charges
Ticket Charge

Listed Stocks
$15 online market orders
$18 online limit orders (listed limit orders only) + $0.015/share
$23 phone/fax (listed limit orders only) + $0.015/share

Options
$15 online + $1 per contract
$18 phone/fax + $1 per contract

OTC Agency Stocks Bonds
$15 online market orders $25
$18 online limit orders
$23 phone/fax

Principal
Bonds $35
Unit Trusts $30

Mutual Funds
Funds PLUS Free Load $10 or $23
Direct Free No-Load $20

Awards
LPL Financial Independent Advisor Services hosts three conferences annually for advisors at various levels of production. The industry's largest advisor forum, FOCUS, is open to all advisors. The FOCUS Conference emphasizes networking, training and education and provides an excellent opportunity for advisors to broaden their knowledge of the programs and technology available to them through LPL Financial. Our top producer conferences, MASTERS and SUMMIT provide networking opportunities at luxurious resorts in scenic locales, both within and outside the United States. MASTERS attendees have created dynamic financial services practices and have reached high levels of production. SUMMIT attendees are at the pinnacle of their profession and are the top producers of LPL Financial.