Clients Prefer Commissions
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Results from a Securities Industry Association (SIA) investor survey, released during the firms' annual convention in Boca Raton, Fla., Nov. 5-8, show that 56% of investors with a broker prefer paying commissions versus just one-third who said they'd favor an asset-based fee.
Investors who do not use a full-service broker, however, prefer asset-based fees to commissions by a 49% to 38% margin.
How well investors understand brokerage charges and how fair they think those costs are also depends on whether they use a full-service rep (see chart in the January '98 issue of Registered Representative).
