Trailing Commissions – Do you need to incur these costs?

April 01, 2009 | admin | Comments 4

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iRefund – Vows to solve the mystery of the trailing commission 

This website brings to light an interesting aspect of investing. Hidden costs that an investor carries over the lifetime of the investment known as ‘trailing commissions’. Basically what this means that every time a consumer makes an investment whether it is a Home Loan or Life Insurance the broker who underwrites the investment on behalf of the investing company earns a commission from it which could be one time or as many times a recurring payment is made by the investor. iRefund is an online brokerage that vows to return back to the investor all trailing costs after deducting a one time charge for its services.

iRefund  does not require the investor to change any section of his or her portfolio but only nominate iRefund as their broker. A Refund Calculator allows you to lay out your investment and Superannuation and Pension distributions with a 4% entry fee and 0.75% trailing commission over the investors’ life time – that is until retirement – and gauge the expected amount paid out in commissions until retirement. The results are quite surprising as the trailing commissions add up to quite a bit over the long term.

So the question remains as to how a broker earns his fee for a job done? The answer given in the iRefund website is quite simple. The agent just charges a one time fee for services rendered all commissions and rebates received from lending and investing institutions are ploughed back to the investor as annual cash refund.

Located in Melbourne, Vic.  iRefund is an online brokerage company that has found an innovative way to attract investors to use its brokering services.

Happy Investing

Filed Under: Investment Strategies • Property Investment Tips • Property Websites

Tags: Home Loans • Investment Finances • Mortgage Brokers • Refinancing