service fee

Definition

A part of a mutual fund's 12b-1 fee, not to exceed 0.25%, which compensates financial planners or brokers for shareholder services.

Use service fee in a sentence

The hotel I stayed in in Florida had a 10% service fee to keep their website and other services up and running throughout the year.

​ Was this Helpful? YES  NO 11 people found this helpful.

When selecting a financial advisor it is important to find fee based advisors as they do not make money by mindlessly pushing clients into trades to make money, but instead make their money off of collecting a Service Fee, therefore they make better money by having more money under advisement.

​ Was this Helpful? YES  NO 9 people found this helpful.

Bill hated purchasing his concert tickets from the online provider due to the extremely high service fee they charged. He preferred to buy them from the venue box office

​ Was this Helpful? YES  NO 7 people found this helpful.

Show more usage examples...

Mentioned in these terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
earnings allowance checking account