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Home > Why LPL Financial > Payouts and Pricing

Payouts and Pricing

At LPL Financial, we focus on

financial advisor payouts

and ways we can 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 reimburses a portion of the administrative fees paid on advisory accounts to advisors who qualify based on the revenue tiers below.

Administrative Fee Reimbursement Program:

Individual Advisor ReimbursementBranch Reimbursement
Tiers Based on Advisory Revenue
Administrative Fee Reimbursement Rate
Tiers Based on Advisory Revenue
Administrative Fee Reimbursement Rate
$250,000 - $399,999
10%
$500,000 - $749,999
10%
$400,000 - $599,999
25%
$750,000 - $999,999
25%
$600,000 - $799,999
40%
$1,000,000 - $1,999,999
40%
$800,000 - $999,999
55%
$2,000,000 - $3,499,999
55%
$1,000,000 - $2,499,999
70%
$3,500,000 - $4,999,999
70%
$2,5o0,000 - $3,999,999
80%
$5,000,000 -$7,499,999
80%
$4,000,000 - $7,499,999
90%
$7,500,000 - $9,999,999
90%
$7,500,000+
100%
$10,000,000+
100%

 

 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:

$100,0001% Bonus$1,000,0005% Bonus
$200,0002% Bonus$2,000,0006% Bonus
$500,0003% Bonus$3,000,0007% Bonus
$750,0004% Bonus$4,000,0008% Bonus

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

Branch:

$300,0001% bonus$3,000,0004% Bonus
$500,0002% bonus$4,000,0005% Bonus
$1,000,0003% bonus$5,000,0006% 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.

* The bonus is applied to aggregate production and is paid on incremental production beginning at $100,000. For production of $4mm and above the maximum percentage payout is 98%.

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.