WSJ:
"At Fidelity, Schwab and TD Ameritrade, employees win extra pay and other incentives to put clients in products that are more lucrative for them, and the firm."• "advisers at some of the biggest discount brokerage firms make more money if they steer clients toward more-expensive products"
• "Clients hear the representative doesn’t work on commissions, and they think that means a rep doesn’t work on incentives"
• "You’re omitting certain facts that the client would probably appreciate understanding"
• "Fidelity representatives... earn more than twice as much... on choices that typically generate higher annual fees"
• "At Fidelity, sales incentives not only enhance pay directly but also help representatives win “Achiever” bonuses that can be tens of thousands of dollars a year."
• "At Schwab, employees can win an award including a trip to such destinations as Florida or Hawaii; for advisers, performance is measured partly by sales volume in certain products."
Just a few of the interesting points made in
this WSJ article.
