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Written by 3:38 pm Blog, Securities Fraud Articles • One Comment

Beware of High Commission Products

Stockbrokers are essentially salesmen that primarily work for commissions. The commission’s stockbrokers earn varies between the types of securities products. In general, securities products that are more complex and high risk offer better commissions. Unfortunately, the high commissions stockbrokers earn may provide them with enough incentive to make unsuitable investment recommendations. Investors should be made aware, that their stockbroker may not have their best interested in mind. The following includes some of the highest commission earning securities products:

8% – 10%   Hedge Fund
5% – 10%   Private Placement
3% – 7%     Non-traded REIT
3% – 7%     Variable Annuity
2% – 5%     Mutual Fund
2% – 4.5%  Closed-End Fund
2% – 4%     Managed Futures
2% – 3%     Structured Products
1.5% – 3%  Unit Investment Trust

The attorneys of The White Law Group focus exclusively on the representation of investors against their stockbroker or brokerage firm. If you were talked into purchasing a high commissions securities product and have suffered losses as a result of your stockbrokckers unsuitable investment recommendations, please call the attorneys of The White Law Group at (312)238-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.

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