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Payouts and Pricing

At LPL, we focus on ways we can help improve our advisors’ profitability. As other firms have decreased financial advisor payouts, we have increased them. And as other firms increase fees, we continue to reduce them.

Many advisors have succeeded in more than doubling their fee-based advisory business over the past five years. This growth has allowed LPL to once again provide reduced pricing options.

Administrative Fee Reimbursement Program
LPL reimburses a portion of the administrative fees paid on advisory accounts to advisors who qualify based on the revenue tiers below. The greater your advisory revenue, the greater your reimbursement. The program provides a quarterly reimbursement based upon your trailing 12-month advisory revenue. At the end of each quarter, a snapshot of your 12-month rolling advisory revenue is taken to determine your reimbursement for the upcoming quarter.

Individual Advisor Reimbursement
Tiers Based on Advisory RevenueAdministrative Fee Reimbursement Rate

$250,001 - $600,000
$600,001+

10%
25%

 

 

 

Representative Payout Rate and Charge

Security TypeLPL 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

76.5% - 85% (Primary 85% and Secondary 76.5%)

Stocks, Bonds, Options, Managed Commodity Accounts

76.5% - 83% (less clearing costs)

 

 

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

 

Affiliation Costs
Annual

- Errors and Ommissions insurance: $3,200 plus an additional fee of $600 if a registered representative is engaged in an approved outside business activity of life or health insurance or as a Registered Investment Advisor (RIA).

- Compliance Inspection fee: $300 - $600

Monthly

- Resource Fee: $175

- Bonding Fee: $10

Miscellaneous

- SIPC Assessment: 0.1875% of Gross Commissions

- FINRA Asssessment: 0.23% of Gross Commissions

 

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

 

Individual:

$100,000

1% Bonus

$1 million

5% Bonus

$200,000

2% Bonus

$2 million

6% Bonus

$500,000

3% Bonus

$3 million

7% Bonus

$750,000

4% Bonus

$4 million

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 million

4% Bonus

$500,000

2% Bonus

$4 million

5% Bonus

$1,000,000

3% Bonus

$5 million

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%. Production generated by advisors, who generated less than $250,000 in gross commission and fees in the previous 12 months at their prior broker/dealer, will not have their production credited toward the Brand Production Bonus as long as that individual's annual production remains below $250,000.

 

General Securities:

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

ProductionBonusPayout 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.

 

 

 

Brokerage Charges


Equities
$15 online market orders
$18 online limit orders (listed limit orders only) + $0.015/share
$25 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

 

Fixed Income
$25 – $35

 

Unit Investment Trusts
$20 – $30

 

Mutual Funds
$0–$30 (depending on sponsor) online

 

Advisory Charges


Equities/ETFs
$9 online

 

Options
$25 online

 

Fixed Income

$50

 

Unit Investment Trusts
$35

 

Mutual Funds
$0 -$26.50 (depending on sponsor) online

 

Awards
LPL Financial Independent Advisor Services hosts three conferences annually for advisors at various levels of production. The industry's largest advisor forum, the LPL Financial Focus Conference, 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.