What are client commission arrangements?
Broker-dealers typically provide a bundle of services, including research and execution, which are paid for with commissions. The research provided can be either proprietary or non-proprietary.* Because commission dollars pay for the entire bundle of services, the practice of allocating certain of these commission dollars to pay for the research component came to be called “softing” or “soft dollars.” Recently, the term “client commission arrangement” has become prevalent in the industry because it more accurately describes these programs.
Related Questions
- I have 5 clients registered on Dream-marriage.com, but my account does not show any commissions. What does it mean when a client is registered and when is the commission paid?
- I have 6 clients registered on AnastasiaWeb but my account does not show any commissions. What does it mean when a client is registered and when is the commission paid?
- What is the basis of soft dollars or, as they are known today, client commission arrangements?
