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Payouts and Pricing
At LPL Financial, 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 Financial to once again provide reduced pricing options.
Administrative Fee Reimbursement Program
LPL Financial 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 | Branch Reimbursement | ||
|---|---|---|---|
| Tiers Based on Advisory Revenue | Administrative Fee Reimbursement Rate | Tiers Based on Advisory Revenue | Administrative Fee Reimbursement Rate |
|
$250,001 - $600,000 |
10% |
$500,001 - $1,250,000 |
10% |
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% - 83% (less clearing costs) |
Monthly Fees
- 1-4 representatives, $175 per representative
- 5-11 representatives, $125 per representative
- More than 12 representatives, $100 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 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%.
Branch:
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 LevelPayout 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 $4 million and above the maximum percentage payout is 98%.
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.
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