Remember the times when you as the client would phone up your broker and make a trade to buy a stock, or a bond, or a fund? You usually asked what the commission was going to be, or at least an approximation.

There are many people in the world in which we live continuing with such modus operandi. Bottom line: It's archaic and inconvenient. It's also a rip off to the client as there is now a better more cost effective solution.

I'm referring to investment portfolios that are more commonly known as "Fee Based Accounts". These have been around a while now, and the client pays a percentage of their assets e.g 0.75% per annum every year as a total fee, instead of a commission
(on $1M that = $7500). The minimum threshold used to be quite high.

Good news: The Day of Reckoning has arrived! The dollar minimum to open an account with this type of portfolio has been dramatically reduced as investment firms remain competitive and new platforms arrive for the everyday investor.

Applaud and hooray for competition with lower fees for investors !