Brokerage & Direct Business

For the brokerage and direct-business relationships described here, the client pays a commission when certain investments are purchased or sold. The amount can vary based on the investment, transaction, and applicable product terms.

Frazzetta Financial Strategies may receive a commission when an investment is purchased or sold. Depending on the investment, we may also receive ongoing compensation, such as 12b-1, shareholder-service, or other product-related fees. Because costs and compensation vary, we consider both the upfront and ongoing expenses, along with the alternatives available, when making a recommendation. The client’s best interest remains at the center of that decision. Additional details are available in the investment’s prospectus and related disclosures.

In a brokerage relationship, compensation is generally tied to individual transactions and may also include product-related ongoing compensation, as disclosed. In an advisory relationship, the client instead pays an ongoing asset-based fee for continuing advice, monitoring, and portfolio management. Depending on the services desired, expected trading activity, and applicable costs, one structure may be more appropriate than the other.

For brokerage and direct-business relationships, accounts are generally non-discretionary. We may provide a recommendation, but a purchase or sale is made only after the client gives specific approval or instructions. This structure may be appropriate when a client does not need ongoing portfolio management, expects to trade infrequently, plans to hold an investment for a longer period, or prefers to remain responsible for final investment decisions. By contrast, an advisory account is designed for ongoing advice, monitoring, and portfolio management and may permit us to trade within the authority granted by the advisory agreement without obtaining approval for each transaction. We consider the services expected, anticipated trading activity, costs, investment needs, and the client’s best interest when helping determine which relationship is appropriate.