Fees & Charges
Securities Research, Inc. is registered with the Securities and Exchange Commission (SEC) as a broker-dealer and is a member of FINRA and SIPC. Our firm is also a state-registered investment adviser (RIA). We buy and sell securities, including stocks, bonds, options, money market funds, mutual funds, exchange-traded funds (ETFs), CD's, and other publicly traded securities investments. Our financial professionals offer brokerage services and investment advisory services depending upon the registrations they have. Brokerage and investment advisory services and fees differ, and it is important for you to understand these differences. Free and simple tools are available to research firms and financial professionals at https://www.investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing. When you discuss investing with our financial professionals you should always ask whether they are acting as a broker dealer registered representative or as an Investment Adviser. This document references information regarding our financial professionals who act as registered representatives of Securities Research's broker dealer. For information on our financial professionals who act in the capacity of Investment Adviser for Securities Research, please ask to see a copy of the firms Form ADV or visit www.adviserinfo.sec.gov. Information regarding the types of investment account that is right for you can be found in the firm's Form CRS at www.securitiesresearch.com/CRS.
All financial professionals have conflicts of interest. Because he more transactions a customer does, the more the firm gets paid. The firm's financial professionals derive part of their compensation from commissions and fees generated by the firm's customers. These payments include, commissions on securities purchases, options, bonds and mutual funds. The firm is also compensated indirectly from investments made by the firm's customers. These payments include "trail" fees on mutual funds, which are paid to the firm as long as the customer holds the mutual fund in their account with the firm. The firm is also paid indirectly by its clearing firm when a customer of the firm holds money market funds or cash "sweep" programs.
Securities Research receives a commissions when it purchases or sells a security for a customer. The commissions charged are based upon a schedule that you may request from your representative. Sales fees are charged on mutual fund purchases and are based on the principal amount of money you spend. This charge is imposed by the mutual fund company and some portion of the fee is paid to Securities Research. The more money you invest in a mutual fund, the higher the sales fee. There are circumstances where if you wish to purchase more of a particular mutual fund you may qualify for a reduced sales fee. This is called a "breakpoint". When purchasing a mutual fund ask your representative the amount of the sales fee and if you qualify for a "breakpoint". Commissions and sales fees will decrease the overall amount of money you may make on your investment. Because commissions and fees vary with the type and amount of securities you purchase or sell, we have a conflict of interest which creates an incentive to have you purchase more of one type or class of security over another. Always read and understand your investments prospectus and the charges associated with a particular investment. Ask your representative to explain the details.
Equities and Other Exchange Traded Securities. The maximum commission charged by Securities Research on a equities and ETF's is on our printed commission schedule. We have a minimum commission of $45 per transaction.
Mutual Funds and 529s. The maximum commission or sales charge permitted under applicable rules is 8.5%. When you sell a mutual fund, you will be charged a transaction fee that will not exceed $70 per transaction.
Principal Transactions. Securities Research may buy a security from you at the prevailing market price. It may also sell a security to you on the same basis. This is called a principal trade versus an agency trade where we execute trades in the market on your behalf. When we act as a principal, the security we buy is sold to you at a higher price than our purchase price. This is called a markup. When selling a security for your account, we pay you less than what we sell it for. This is called a markdown. Generally, principal trades are executed for fixed income securities.
Fees and Charges. Your account at Securities Research will be charged fees for account inactivity, account transfers, holding foreign securities, retirement account maintenance and other miscellaneous fees.
Securities Research and its financial professionals receive ongoing compensation from certain investment products such as mutual funds,. These 'trails', also known as known 12b-1 fees are paid to us based upon the assets invested in mutual funds by our customers. The more you have invested in mutual funds, the more fees we will receive. This gives us incentive to encourage you to increase the size of your investment and is therefore a conflict of interest. The amount of trails received varies from fund to fund. For information about trail compensation received by us, you should read the mutual fund prospectus.
Cash Sweep & Money Market
Securities Research offers various types of interest bearing investments for free cash in customer accounts. These include FDIC cash sweep programs and money markets. The FDIC cash sweep program is insured up to $2.5 million per tax ID. The FDIC sweep program places funds with banks that are FDIC (Federal Deposit Insurance Corporation) insured. Compensation for your invested balance is received by the FDIC banks, our clearing broker and the firm and as a result the rate you receive on these funds may be lower than on other investment alternatives, including some money market funds. Similarly, compensation for balances in money market funds is received by the fund, Pershing LLC and the firm. Because we are paid on these balances we have a conflict of interest when recommending the FDIC sweep program and money market funds. For additional information on the fees charged by the cash sweep program or the money market funds please read the prospectus or ask your financial professional.
The financial professionals at Securities Research may make recommendations of investment products, including stocks, bonds, options, ETFs, and mutual funds. The securities products have fees and costs associated with them that may be separate from the commissions and fees that Securities Research charges. For example, Exchange Traded Funds (ETF's) have expense ratios associated with them that range from .05% to 1.0%. Securities Research does not receive any payment from ETF's. You should always review the fees and costs charged by a specific investment product by reading the disclosure documents and by asking your investment professional.
Other Compensation And Conflicts
Securities Research offers its customers the ability to purchase securities on margin. Purchasing securities on margin will result in an interest charge based upon the amount of money you have borrowed against your account. This charge is in addition to any other fees and expenses charged to your account. We may receive a portion of the margin interest charged to your account and therefore have a conflict of interest because being paid a portion of the interest charged could give us an incentive to recommend purchasing securities on margin. The leverage provided by using a margin account may result in greater gains or conversely, greater losses in your account. For more information on margin accounts read the Truth in Lending Statement in your account opening documentation before opening a margin account.
Financial Professional Compensation, Fees And Related Conflicts
Securities Research compensates its employees either through salary and bonus or as independent contractors who are paid a percentage of the sales they generate. That percentage varies from independent contractor to independent contractor. Securities Research charges its independent contractors various fees for supervision, administrative services, technology and licensing. Both types of payment present a conflict of interest because the more revenue that is generated from commissions and fees means more may be ultimately paid to the financial professional regardless of the type compensation.
Outside Business Activity
Some of Securities Research's financial professionals are permitted outside business activates for which they may be compensated by another unaffiliated firm.
FEE SCHEDULE -
ACATS Outgoing - $90
ACH - Free
Accommodation Transfer - $20 per security
Direct Registration - $25 per security
Check Reorder Fee - $12.50
Check Writing - $25 annually
Confirms and statements via email - free
Domestic $4 per account, per month, per issue
Extensions - $15
Fed Funds wire - $20
Foreign Security on FX exchange $75 plus Commission
Inactive Accounts - $50 annually
Inactive Mutual Fund only - $25
IRA Custodian Fees - $35
IRA Termination - $95
IRA to ROTH - $25
Legal & Restricted Transfers - $60
Legal Transfer - $75
Lost Certificate - $75 per certificate plus cost of insurance
Low Balance Fee (Corestone Accounts) - $2 per month below $5000 balance
Mailgram - $10
Overnight mail - $30
Online Performance Package - $24 annually
Paper Confirmations - $1 per confirm
Paper Statements - $1 per statement
Reorg Voluntary - $30 per security
Returned Funds - $30, Safekeeping
Safekeeping: Foreign - $4 per account, per month, per issue
Stop check - $20
Trade Cancellations - $5
Additional information about Securities Research and its financial professionals is available on FINRAs website at http://brokercheck.finra.org.