amqata

the_tank wrote:
but the c is referring to definition of softdollar arrangement. Basically something is wrong with the “process” of softdollar.
The only thing looks suspecious to me is that the company average out the brokerage commission acrosss all client accounts to get volumn discount. It may not be fair for all clients.
Thoughts?
I initially thought so as well. But think of it this way, could a single low volume transaction for a client account be able to get more competitive rates compared to if you merge your transactions before sending out to your broker. Likely, high volume trades will be able to help reduce commission costs in the long run when averaged out. This brings savings of transaction costs to clients account.