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Sales Fees per AUM

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Market Wizard
Boca Raton
 
Trading Experience: Advanced
Platform: Variety
Broker/Data: Optimus Futures, LLC
Favorite Futures: Futures
 
mattz's Avatar
 
Posts: 2,385 since Sep 2010
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Hello,

I would like to better understand how sales people are paid in Hedge Funds and/or private banking.

For example, how much a salesman can get for a referral to a Hedge Fund when the client is investing 1M USD? For simplicity, we can say that the HF charge 2/20

or

For example how much a wealth manager (broker) from a large US bank can make if he/she signs a new client with a 1M USD business.

Do they work with a once time fee or variable for the existence of the client.

the 2/20 arrangement is reserved for the money manager. How they choose to compensate sales people is up to them whether one time or on an ongoing basis. You would need to find out if you need to be licensed in order to be compensated.

Thanks,
Matt Z
Optimus Futures

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