InvestorQ : I am a certified MF broker and want to know what can I charge if I advise the clients other than the distribution commission?
Mary Joseph made post

I am a certified MF broker and want to know what can I charge if I advise the clients other than the distribution commission?

Answer
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12 months ago


The main income of a mutual fund broker is from an upfront commission or brokerage fee/commission. But an MF broker can also charge for other services from his customer under different heads such as Trustee fee, Audit fee, custodian fees, marketing & selling expenses including agent commission, cost related to investor communication, cost of fund transfer from one location to other location.

Now what you can charge from your customer for giving advice can fall under investor communication cost. Or perhaps, you can call it as advisory charges which you can charge directly from your customer along with the commission you charge. But, it has to be nominal and justifiable; also same shall be mentioned in the break-up of your total brokerage fee/commission. If you’re providing only advice to a certain client, you can charge a nominal amount which justifies services provided by you.