LPL to lower its stock and ETF fees dramatically

B-D to cut transaction costs from $15 a trade to $9

Aug 8, 2011 @ 2:44 pm

By Lavonne Kuykendall

LPL Financial LLC will lower its equity and ETF transaction fees to $9 a trade, from $15, at the beginning of next year, Bill Dwyer, president of national sales and marketing for LPL Financial, said at its annual conference in Chicago.

Mr. Dwyer, addressing an audience of about 2,600 advisers, said the change in part reflects the growing popularity of trading in ETFs. The crowd gave a healthy round of applause to the announcement. Conversely, the advisers offered a more muted reaction to the announcement that the firm's 12,600 representatives and advisers will be receiving a free one-year membership to the Financial Services Institute, the lobbying group for independent broker-dealers and their reps.

The addition of LPL's troops will push membership in the lobbying group to over 28,000 broker-dealers and reps, and will give the group a little more clout in Washington, executives said at the conference.

LPL Financial, which is a unit of LPL Investment Holdings Inc., offered a high-wattage lineup of speakers at its four-day conference. Speakers included Michael Eisner, former chief executive officer of The Walt Disney Co., and former Secretary of State Condoleezza Rice, as well as a performance by rocker John Mellencamp.

Despite the lower transaction fees, LPL has seen its fixed costs rise in the past few years, and “periodically we need to pass those on,” said Mr. Dwyer, though he didn't give any specifics as to when that might happen.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

How 401(k) advisers can use 'centers of influence' to grow their business

Leveraging relationships with accounting, benefits, and property and casualty insurance firms can help deliver new business leads for retirement plan advisers.

Latest news & opinion

Things are looking up: IBDs soared in 2017

With revenue up, interest rates rising and regulation easing, IBDs are soaring.

SEC advice rule may give RIAs leg up over broker-dealers

Experts say advisers will be able to point to their role as fiduciaries as a differentiator in the advice market.

Brokers accept proposed SEC rule on who can call themselves an adviser

Some say the rule will clear up investor confusion, but others say the SEC didn't go far enough.

SEC advice rule: Here's what you need to know

We sifted through the nearly 1,000-page proposal and picked out some of the most important points.

Cadaret Grant acquired by private-equity-backed Atria

75-year-old owner Arthur Grant positions the IBD for the 'next 33 years.'

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print