Retain more of the revenue you generate. Get rewarded for your growth.
Choosing a broker-dealer to support your business is a big decision. You need to consider factors like the culture of the organization, the technology they provide and the level of service they aspire to. And of course, your net payout is important too.
One of the great benefits of being an independent advisor and business owner is the compensation you receive for the value you’ve created for your clients. Naturally, your earning potential is key when making a change to your business. At LPL, we respect your hard work. And because our success depends on yours, we do our part in supporting you to realize the highest possible value from your business.
Our competitive payout structure means that you retain more of the revenue you generate. Plus, you continue to earn bonuses as you grow. This gives you the opportunity to enhance the value of your practice and clients.
LPL Financial offers competitive compensation structures, with payouts between 90-100%
||LPL Financial Payout
|Mutual Funds||Starting at 90%|
||Starting at 90%|
|Variable Annuities||Starting at 90%|
|Unit Investment Trusts (UITs)||Starting at 90%|
|Fixed Income||Starting at 90%*|
|Stocks, Options, ETPs, Closed-End Funds||Starting at 90%**|
Commissions on stock and option trades are based on the published commission schedule and may be discounted up to 50%. The minimum commission is $30. Markup/markdown on fixed income trades varies with the particular product and length of maturity.
* Excluding any LPL markup/markdown
** After the application of an LPL trade and surcharge of 16.6%
OSJ managers receive bonus payouts based on overall production. Individual bonuses paid are deducted from the branch bonus. If total individual bonuses paid for that branch exceeds the branch bonus, no further bonuses are paid to the OSJ manager. Production associated with new advisors who join existing LPL branches and have less than $250,000 of verified, trailing 12-month production is not eligible for branch bonus. In addition, the branch production bonus will not apply with respect to gross commissions and fees earned by an advisor who transfers to your OSJ from another LPL OSJ.
Branch Bonus Stucture
|$300,000 - $499,000||1%|
|$500,000 - $999,999||2%|
|$1,000,000 - $2,999,999
|$3,000,000 - $3,999,999||4%|
|$4,000,000 - $4,999,999||5%|
* Hybrid RIA production bonuses are calculated on brokerage commissions only and not advisory revenue paid to the RIA firm.
If individual bonuses are paid during the year, they 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.
|Strategic Asset Management (SAM)
SAM is a comprehensive, open-architecture, fee-based investment platform that offers you the ability to create customized portfolios while wrapping multiple investments in one account with one consolidated statement.
|SAM I: 90% of advisory fee, net of administrative fee (client pays transaction charges)
SAM II: 90% of advisory fee, net of administrative fee and transaction (charges (advisor pays transaction charges)
Manager Select is a separate account platform that offers access to a variety of institutional managers at significantly lower account minimums.
|90% of net advisory fee, after deduction of: Administrative fee, Custody and clearing fee, Separate account manager fee|
|Guided Wealth Portfolio (GWP)
GWP is an advisor-enhanced digital advice solution that couples an online investment platform with your oversight, review, and advice.
|90% of advisor fee|
|Optimum Market Portfolio (OMP)
OMP is a mutual fund wrap program that offers portfolios composed of a suite of six multimanager mutual funds featuring more than 10 industry-renowned subadvisors.
|90% of total advisory fee|
|Model Wealth Portfolio (MWP)
MWP offers fully diversified mutual fund and/or exchange-traded product (ETP) models guided by 10 institutional portfolio strategists, including LPL Research.
|90% of advisor fee|
|Personal Wealth Portfolio (PWP)
PWP is a unified managed account (UMA) that provides the framework to deliver sophisticated investment strategies to your high-net-worth clients in an efficient way.
|90% of net advisory fee, after deduction of: Administrative fee, Custody and clearing fee, Overlay portfolio management fee, Separate account manager fee|
LPL reimburses a portion of the administrative fees paid on advisory accounts to advisors who qualify based on the revenue tiers. The greater your advisory revenue, the greater your reimbursement.
The program provides a quarterly reimbursement based on your trailing 12-month advisory revenue. At the end of each quarter, a snapshot of your 12-month rolling advisory revenue is used to determine your reimbursement for the upcoming year.
Individual Advisor Reimbursement
|Tiers Based on Advisory Revenue||Administrative Fee Reimbursement Rate|
Errors and Omissions Insurance: $3,650, plus an additional fee of $600 if a registered representative is engaged in an approved outside business activity of life or health insurance or as a registered investment advisor (RIA)
Compliance Inspection Fee: $300–$600
|Monthly||Resource Fee: $175
Bonding Fee: $10
Core Technology Fee: $75
|Miscellaneous||SIPC Assessment: 0.1875% of gross commissions
FINRA Assessment: 0.23% of gross commissions
Please refer to the Representative Agreement for a comprehensive list of all affiliation costs.
|Fixed Income||$50.00 online/phone|
|Mutual Funds||$0.00–$26.50 (depending on fund family) online|
Please refer to your Representative Agreement for official pricing.
|Equities||$15.00 online market orders
$18.00 online limit orders
$25 exercise and assignments
|Fixed Income||$35.00 online/phone|
|UITs||Buy: $30 online
Sell: $20 online
|Mutual Funds||Load fund buy: $0-30 (depending on the fund family) online
Load fund sell: $0 online
No load fund sell: $15 online
|LPL Core Technology Package||$75/month per advisor|
|Client Reporting||$75/month per advisor|
|Redtail CRM||$50/month for up to 60 users|
|Salesforce CRM||10 or fewer users: $65/month per user; 11 or more users: $60/month per user|
|Enhanced Trading||Included with LPL Core Technology subscription; Rebalancer add-on subscription for $150/month|
|WealthVision||$300/month per advisors (1 advisor and 3 assistants); $21/month per additional assistant|
|WealthVision Select||$150/month per advisors (1 advisor and 3 assistants); $21/month per additional assistant|
|WealthVision Planner||$125/month per user|