Commission paid by mutual funds to investment banks?

M

Maverick2608

We know the commission charged by retail brokers.

But what do mutual funds typically pay in commission when they send their US stock orders to investment banks like JP Morgan, Morgan Stanley etc.?

In the old days mutual funds paid for research indirectly through commission. Has that changed, so mutual funds pay separately for commission and research?
 
They typically pay about 2 to 3 cents a share, especially if the broker is using its own capital to facilitate the trade. The rules have changed a lot on what can be soft dollar today. The biggest number in the equation is short stock rebate, which for size institutions frequently makes commissions look irrelevant.
Hit Google if you want to see soft dollar commentary.
 
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