What is a Platform Fee in the context of a Registered Investment Advisor (“RIA”)?

Definition: This typically refers to a fee, usually expressed in basis points, that is assessed to a client account.

When used in an RIA context: “In addition to the fee the client pays the financial advisor for providing services to the client/account, the financial advisor’s firm also charges a platform fee on the account, which is retained by the firm (i.e. the financial advisor does not receive it.)”

See also: Episode 120, basis points