FINRA Warns Brokers Marketing "No-Fee" IRAs
By Hal M. Bundrick
NEW YORK (MainStreet)--The marketing of "free" or "no fee" brokerage and IRA accounts is gaining the attention of FINRA, the U.S. securities firm regulator.
"Broker-dealers' marketing campaigns often emphasize that fees are not charged in connection with their retail brokerage accounts and IRAs," the regulator says in an advisory notice to firms. "Nevertheless, while certain types of fees may not be charged, others will be."
FINRA notes that such accounts may be subject to fees for opening, maintaining or closing accounts, as well as additional charges such as brokerage commissions, management fees and other product-level expenses. The agency adds that "some broker-dealers' communications that discuss fees may not be fair and balanced, and could be misleading."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV