Mutual funds pay “trailing fees” to those who sell their products typically to compensate them for advice provided to their clients to purchase those products. When an investment advisor recommends a mutual fund that the investor purchases, each year the mutual fund pays a “trailing fee” to that advisor. The trailing fees are also paid to Discount Brokerages, such as BMO Investorline, TD Direct Investing, RBC Direct Investing, CIBC Investor’s Edge and Scotia iTrade among others, who provide online platforms to investors to invest their own money without an advisor. Those Discount Brokerages, however, do not, and are not permitted to, provide advice to investors on what investment products to choose.
Did you buy mutual funds through your Discount Brokerage? Do you think it is unfair that Discount Brokerages’ get paid “trailing fees” for advice they do not provide to you? Do you think those Discount Brokerages should reimburse you for all the trailing fees they have recovered? If so, please complete the form below or contact us at 1-855-595-2622 or email@example.com.