ayodayo

I posted a similar question on soft dollars earlier. Your answer clears the issue a bit but I am afraid I'm still confused...

In your example, is it the case that you will pay the broker too much and get rebate in cash (which you then use for your operating expenses)?

Or is it that you ask him not to send any research to you but instead ask him to pay your bills (in return for a high brokerage)?

Either way, I'm kind of a surprised if any reputable broker would do either of these.