Raymond James working on no-fee ETF program

Raymond James Financial Inc. aims to have a no-fee ETF program up and running within six months.
OCT 18, 2011
Raymond James Financial Inc. is in talks with Invesco PowerShares Capital Management LLC and Blackrock Inc., sponsor of iShares, about developing a commission-free ETF program at the brokerage firm. Mike Di Girolamo, who heads Raymond James' custody unit, said he is in active talks with the ETF sponsors and hopes to have an ETF program up within the next six months. The program would be available through all of Raymond James' channels, not just the Investment Advisors Division of Raymond James, its custody unit. TD Ameritrade Holding Corp., Fidelity Investments and Charles Schwab & Co. Inc. have offered no-cost trades with select ETFs for a year or more. “We have to be in there competitively [with other custodians],” Mr. Di Girolamo said. The no-commission program would be a bit different than those at the discount brokers, Mr. Di Girolamo said, because ETF providers wouldn't promote their products to investors directly but instead make them available to Raymond James advisers with no transaction charges. In no-fee programs, ETF sponsors reimburse brokerage firms for lost trading revenue, and hope to profit from the increased asset flows into their products.

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