The overall fee you pay for maintaining an account with USA Financial Exchange has four components, identified in more detail, below: Platform Fee, Strategy Fee, Custody Fee, and Advisory Fee. These four components combined equal the total fee you will pay.
USA Financial Exchange charges you a tiered Platform Fee based on the assets in your account (with a tiered fee schedule, different asset levels are assessed different fees):
|Account Size||Portfolio Fee||Platform Fee||Custody Fee||Strategy Fee|
|$0 - $250,000||1.2%||0.25%||$75 Annually||SSM, PSM, or AIM fee may apply. See Allocation Form.|
|$251,000 - $500,000||1.1%||0.24%|
|$501,000 - $1,000,000||1.0%||0.23%|
|$1,000,000 - $2,000,000||0.9%||0.22%|
|$2,000,000 - $3,000,000||0.8%||0.21%|
|$3,000,000 and up||0.8%||0.20%|
In addition to the Platform Fee, subadvisers (the third-party money managers who manage your assets) on our platform will also charge a fee (“Strategy Fee”). The Strategy Fee you pay depends on which subadviser you select, but the fees typically range from 0.35% (35bps) to 1% (100bps). Please see USA Financial Exchange’s Client Profile form in the new account application packet for a full listing of all specific fees and allocations.
USA Financial generally does not participate in the Strategy Fee. However, we do have subadvisers who provide USA Financial Exchange with a share of their revenue based on breakpoints – this does not increase the fee you are charged; the subadviser simply provides USA Financial Exchange with a portion of the fee it collects.
EAS also charges a $75 annual per account fee (“Custody Fee”). This fee is assessed by EAS – USA Financial Exchange does not receive a portion of this fee.
Additionally, each RIA/financial adviser will charge an advisory fee ("Advisory Fee") for the services provided to you. The Advisory Fee is assessed by your financial adviser's RIA and your financial adviser receives a portion of it. The Advisory Fee covers serviced provided to you by your financial adviser: investment advice, account monitoring, etc. USA Financial Exchange does not receive any portion of the Advisory Fee assessed by your financial adviser. The Advisory Fee and all other relevant fees and charges should have been disclosed to you by – your financial adviser during the new-client and/or new-account process and incorporated into a written advisory agreement which you would have signed. You should also refer to your financial adviser’s RIA’s Form ADV 2A and the adviser’s fee schedule. Fees paid to your financial adviser in the form of an Advisory Fee are in addition to the fees paid to USA Financial Exchange.
The maximum fee permitted on USA Financial Exchange's platform is 2.7% plus the $75 annual custodian fee.
USA Financial Exchange and its affiliate, USA Financial Formulas (collectively, “USA Financial” for this discussion), utilize JUST Capital for research and marketing-support services. Specifically, USA Financial relies on JUST Capital’s research to create our ESG models – which are available through USA Financial Formulas but may be available through USA Financial Exchange in the future.
USA Financial Formulas' ESG models do not participate on the standard fee schedule, as indicated above. The fee charged on USA Financial's ESG models – whether the account is through USA Financial Formulas or, eventually, USA Financial Exchange – is 50 basis points, or 0.50%, of the total assets in the ESG account.
EAS’s service fees are assessed on transaction activities and services outside standard asset custody and trading. The Account Service Fees are charged to you should you utilize any of the services, as follows:
|Account Service Fee Description||Fee Assessed|
|Check Distribution||No Fee|
|Outgoing Transfer/Account Closing Fee||$75|
|Outgoing Wired Funds||No Fee|
|ACH on Demand or Systematic||No Fee|
|Returned Check||$25 per occurrence|
|Cancelled Check||No fee|
|Next Day Mail Service||$20 per request|
|Paper Statements||Monthly – No Fee|
|SoloK Annual Maintenance Fee||$50 quarterly|
|SoloK Loan Fee||$100 per loan|
|Non-traditional asset custody in Qualified Accounts||$12.50 per asset quarterly per account|
|Non-traditional Asset Custody in Non-Qualified Accounts||$37.50 per asset quarterly per account|
Please note that if a chosen subadviser utilizes no-transaction-fee funds (“NTFs”), Clients could be charged redemption fees for early withdrawal. For example, if Subadviser A utilizes NTFs and a Client chooses Subadviser A and invest assets today, one week from today, Subadviser A could rebalance the account and sell the NTF positions. This could result in redemption fees because the Client did not hold the NTF for the requisite holding period. Account management is controlled by the subadviser, therefore, these charges would be out of USA Financial Exchange’s control.
Some RIAs/financial advisers have custodial fee schedules in place that predate the RIA’s relationship with USA Financial Exchange. USA Financial Exchange will honor these fee schedules rather than USA Financial Exchange’s default schedule described above. As a result, it is possible that some clients will be paying more or less than those utilizing USA Financial Exchange’s default fee schedule. However, the maximum fee permitted on USA Financial Exchange’s platform is 2.7% plus the $75 annual custodian fee, as referenced above.
USA Financial Exchange’s affiliate (by common ownership), USA Financial Formulas Corporation ("USA Financial Formulas"), is one of the money managers offered through USA Financial Exchange's platform. As a result, financial advisers will have the ability to offer USA Financial Formulas to you. If you are invested in USA Financial Formulas' strategies, the Strategy Fee will be paid to USA Financial Formulas. In addition, some RIAs and financial advisers may also have a solicitation agreement with our affiliate USA Financial Formulas under which the RIA/financial adviser is paid a fee for referring clients to Formulas. You should review Part 2 of their RIA’s Form ADV for disclosures relating to their RIA and Formulas.
Your RIA/financial adviser is responsible for ensuring that all investments are in your best interest and for performing suitability related to transactions and money-manager selection. At the time an account is opened, your financial adviser is responsible for obtaining your financial information, as well as information regarding your situation and investment objectives, as well as inquiring as to whether you need to place any reasonable restrictions on the management of your account. Your financial adviser is also responsible for implementing any reasonable restriction requests. It is important to communicate information that could impact your financial situation with your financial adviser. We urge you to communicate any important information to your financial adviser immediately. At least annually, your financial adviser's RIA is responsible for contacting all Clients to determine whether there have been any changes in their financial situation or investment objectives and whether clients wish to impose any reasonable restrictions on the management of the account or reasonably modify existing restrictions. At least quarterly, the RIA is responsible for notifying Clients in writing to contact the RIA if there have been any changes in the Clients’ financial situation or investment objectives, or if the Clients wish to impose any reasonable restrictions on the management of their accounts or modify any existing restrictions. Please communicate any changes or important details to your financial adviser.
USA Financial Exchange does not charge performance-based fees nor do we engage in side-by-side management, which occurs when an adviser manages accounts that are charged a performance fee and accounts that are charged another type of fee (such as hourly or flat fees) at the same time. USA Financial Exchange receives a portion of the assets under management fee clients pay – rather than performance-based fees, hourly fees, or flat fees.