FeeX Lets Investors Advise their Advisor on Fees
A new proprietary algorithm claims it can reveal to investors the entirety of the fees they hand over to advisors, including commissions and 12-b1 fees.
FeeX, which developed a platform that lets investors uncover fees associated with retirement and brokerage accounts, has rolled out a new platform targeting advised accounts, according to the company’s press release.
Total fees paid to advisors often exceed 2% of assets when including portfolio allocation fees, according to Yoav Zurel, the company’s CEO. That amount nets advisors in the U.S. $100 billion annually but the clients simply aren’t aware of these fees, according to the press release.
Using algorithms to analyze an investor’s linked brokerage accounts, Zurel claims he can reveal a variety of fees collected by advisors, including commissions, fund and 12b-1 fees. The platform can alert clients if an RIA also has registration as a broker or accepts commissions.
And instead of using the industry-favored basis points to show amounts, FeeX for Advised Accounts displays everything in dollar terms.
Zurel says investors can use FeeX to show their cost figures to their advisors and “provide the advisor with instructions” on what to replace with lower-fee alternative investments. Advisors who aren’t comfortable with such an arrangement can rest assured that FeeX will also recommend its own vetted low-fee advisors to the investors using the platform, the company writes.