INVESTOR CONFUSION EXISTS OVER FEE–BASED ADVICE
In the financial world today, there are basically two types of advice available to investors, brokerage accounts and advisory accounts.Unfortunately, most investors don’t know the difference between these two kinds of advice. In fact, most aren’t even aware a difference exists.
In a recent survey:
• 58% of investors believed both stockbrokers and Independent Registered Investment Advisors have a responsibility to act in their best interest.* • 63% believed that stockbrokers and Independent Registered Investment Advisors were both required to disclose all conflicts of interest before providing financial advice.*
• 81% were concerned that both stockbrokers and investment Advisors provide fee-based advice, but offer different levels of protection.*
• 89% said they would rather work with an investment advisor If they knew advisors provided greater investor protection Than stockbrokers.*
The truth is, there’s considerable confusion in the investment Community regarding financial advice and the people who dispense It. The following questions and answers aim to sort out some of The confusion, and help you find advice you can trust.

WHY IS THERE CONFUSION?

Historically, brokerage firms could offer investment advice only if that Advice was “solely incidental” to their brokerage business, and only If they did not receive “special compensation” for the investment Advice. The SEC interpreted these provisions narrowly until 1999, When it issued a proposal allowing brokerage firms to offer fee-basedAccounts without registering as investment advisors. The SEC also Issued a controversial “no-action” position, allowing brokerages to Take advantage of the proposal even before it was finalized. In 2004, the Financial Planning Association sued the SEC for allowing The “no-action” position to continue without taking final action After hundreds of comments were submitted in opposition to the Proposal. The SEC then reopened the comment process, and on April 6, 2005, it announced it was adopting a final rule generally Similar to its 1999 proposal.

WHERE DOES CHARTTRADER STAND?

At Charttrader, we firmly believe investors are entitled to one Clear set of regulations, no matter who they turn to for their Financial advice. And we’re not the only ones. A recent poll* Revealed that 90% of investors want Congress to set uniform Standards of protection for both stockbrokers and investment Advisors. We stand firmly on the side of the investor to promote A set of regulations that is fair for advisors, brokers and, most Importantly, investors like you.

Starting July 22, 2005, any brokerage firm that offers fee based Accounts must prominently disclose the following:
• Your account is a brokerage account and not an advisory Account. Our interests may not always be the same as yours. Please ask us questions to make sure you understand your Rights and our obligations to you, including the extent of our Obligations to disclose conflicts of interest and to act in your Best interest. We are paid both by you and, sometimes, by People who compensate us based on what you buy. Therefore, Our profits and our salespersons’ compensation may vary by Product and over time.
• Brokerage firms must include this disclosure in their brokerage Account applications, and in advertisements and sales materials For fee-based accounts.
• Brokerage firms must make available someone who can explain To potential customers the differences between brokerage Accounts and investment advisory accounts. Starting October 24, 2005:
• Brokerage firms may not offer discretionary accounts, except In accounts regulated as investment advisory accounts.
• Brokerage firms may not offer “financial planning” services, Except in accounts regulated as investment advisory accounts.
At Charttrader our clients can trade stocks, ETF’s, mutual funds, options, options on futures, commodity futures, and a wide variety of financial products all with the assistance of an experienced investment advisor.
We look at the market using technical analysis and look for confirmation based on fundamentals.
Some of the tools available to clients who hold accounts at brokersxpress include Charts, Stock Research, Commodity Research, Buy and Sell Signals on Stocks and Commodities, Free Stock Quotes, Earnings News and Analysis.
Recommendations are made by investment advisors on money management, retirement planning, aggressive trading strategies, stock selection,
We offer free analysis of chart patterns like: pennants, cup and handle breakouts, support and resistance levels. Head and shoulders patterns and trend lines.