Brokers, Investment Dealers and Securities Dealers:
These are firms registered with securities commissions to trade in securities as agent or principal - they can buy or sell securities for you through other brokers or by selling from their own inventory or buying directly from you for their own account. Brokers and investment dealers are members of a stock exchange and are regulated by the Investment Industry Regulatory Organization of Canada (IIROC) (www.iiroc.ca ). Securities dealers are regulated by securities commissions. All these firms are compensated by transaction commissions that are shared with salespeople.

Salespeople employed by brokers and investment dealers are registered and regulated through the Investment Industry Regulatory Organization of Canada (IIROC) and are known by various titles. Some of these are investment advisers, account executives and registered representatives but there may be others in use. Whatever they are called, it is important to know that they generally are compensated by transaction commissions. But, in some cases, certain salespeople are able to charge an annual fee for the advice and recommendations that they provide. Products available from brokers and investment dealers include:

Securities advice and execution: Brokers and investment dealers buy and sell securities and mutual funds for clients only on direction of the client. Only brokers who have been conferred the CIM designation are able to provide discretionary investment management. Investment dealers also assist corporations in raising capital through new bonds or shares that they sell to clients and the public.

Wrap Accounts: In wrap accounts, typically, the broker or dealer selects an investment counsel or portfolio management firm to manage pooled funds in which clients of the broker invest and the individual salesperson provides the client with advice. These are products where the cost of advice and the management are "wrapped" into one fee. You can expect "wrap" fees to average between 2.5% and 3.7% and, if mutual funds are used in the wrap account, make certain that trailer fees are excluded from the "wrap" fee.