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A trailer fee is a charge levied by certain transportation companies for the use of their trailers to haul cargo. It is typically a separate charge from the cost of transporting the cargo itself.
Trailer fees are a common charge in the transportation industry to offset the costs of equipment depreciation, insurance, and other services. The cost of trailer fees can vary based on a number of factors, including location, size and weight of the trailer, and the duration of the rental.
What is a trailer fee?
A trailer fee is a commission paid to financial advisors or brokers for ongoing services provided to clients who invest in mutual funds or similar financial products.
How are trailer fees calculated?
Trailer fees are typically calculated as a percentage of the client’s investment in a fund, usually ranging from 0.25% to 1% annually.
Who pays trailer fees?
Trailer fees are paid by the mutual fund company to the financial advisor or broker, and the cost is often indirectly borne by the investor through management fees.
What is trailer fee income?
Trailer fee income is the ongoing commission received by financial advisors or brokers for maintaining their client’s investments in certain funds.
What is a trailing commission in mutual funds?
A trailing commission, or trailer fee, is a recurring payment to advisors for continuing to service and advise clients holding mutual fund investments.
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