About this recent article in the WSJ, the schedule from which you see above
In short, the main points are as follows. Until recently, investment consulting remained the last stronghold of high commissions. Commissions are reduced (sometimes to zero) for everything: trading, mutual funds, etf, even hedge funds. Now this trend has come to investment consulting. New technologies allow you to change the ways of communication, reducing the cost of investment advice. Roboadvizor grow and by the end of 2022 under their management will be 600 billion dollars. This is 3 times more than at the end of 2018, but only 3% of the 20-trillionth pie on traditional brokerage accounts. The states have millenial heirs, who tend to ask more questions, for which they pay money. It also contributes to pressure on commissions. But there will always be investors willing to pay a little more for personal contact.
Now to the data on the chart above. For an account of $ 100,000, the average size of commissions is 1.3% per year. At the same time, there is a uniform breakdown between different «forks of commissions» for such clients. 27% of them pay from 1.5 to 1.74% per year, 24% pay from 1.25 to 1.49%, and 33% pay from 1 to 1.24%.
For accounts from 10 million dollars the picture is different. Two thirds (65%) of such customers pay less than 0.75% of assets per year. And only 14% are willing to pay more than 1%.
It is on these numbers that HNWI needs to be guided by investors, and if they ask for more, inquire as to what and decide how expedient it is.