Morgan Stanley Cutting ETF, Stock Commission Costs Ahead of US Regulations

Morgan Stanley's wealth management business is joining an increasing trend in the United States, which is seeing brokerage commissions slashed across the board in an apparent win for clients nationwide. The latest push will see the group lower commissions that brokers earn on stock trades, Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term-traded-funds (ETFs) and annuities.

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The initiative follows on the heels of a similar move back in March when TD Ameritrade, Fidelity Investments, and Charles Schwab all cut their online equity and ETF commissions for investors given widespread pressure to lower costs. The joint industry move also snapped what had been a tight consolidation of commission spreads that held for nearly a decade in the US.

As such, there is now a commission cap for brokers, which will be arbitrated at 2.5 percent of a given trade. For its part Morgan Stanley sees the move as a bid to help better align client costs, according to a recent Reuters report.

Ultimately, the lower costs will be a net positive for clients who will now have to deal with less fees for the same services. The impetus behind the move was a new US Labor Department retirement Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, which will affect investment products such as mutual funds.

The US wealth management industry has had to adapt to the upcoming regulation to change its fees and commissions – the rule comes into effect on June 9, 2017 and will requires firms to eliminate any conflict of interest, such as certain sales incentives, for brokers who are advising clients on their retirement savings.