Securities Research, Inc.

Customer Relationship Summary

June 1, 2020

 

Securities Research, Inc. is registered with the Securities and Exchange Commission (SEC) as a broker-dealer and is a member of FINRA and SIPC. Our firm is also a state-registered investment adviser (RIA). Brokerage and investment advisory services and fees differ, and it is important for you to understand these differences. Free and simple tools are available to research firms and financial professionals at https://www.investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.

 

We are providing this summary to you to explain our brokerage services; if you want detailed information on our RIA services, please visit: https://adviserinfo.sec.gov/firm/summary/6516 to see our Form ADV Part 2A Brochure, or contact us at 772-231-6689 to request information or a copy of the Form ADV brochure.

 

What investment services and advice can you provide me?

We offer brokerage services to retail investors. Here is what we do or do not do:

·        We recommend buying or selling securities after considering your investment profile, and we execute the transactions you decide to make based on our recommendations. We also recommend different account types, such as retirement accounts.

·        We execute transactions for you that you request, that are not based on our recommendations.

·        We buy and sell securities, including stocks, bonds, options, money market funds, mutual funds, exchange-traded funds (ETFs), CD's, and other publicly traded securities investments.

·        We do not offer discretionary accounts:  we always get your approval before trading in your account.

·        Unless we separately agree in writing, we do not monitor your account or your investments.

·        We do not offer products that are proprietary to our firm; we do not offer access to IPO's.

·        We do not impose a minimum account size or a minimum investment amount, but we do charge a minimum commission on each trade executed by you and we charge annual fees for inactive accounts. See the information below about our fees.

 

All recommendations will be made to you as a broker-dealer unless we explicitly state otherwise. If you have an investment advisory account with us, we will orally tell you that we are acting as adviser when making recommendations regarding your advisory account.

 

Before and after you become a customer, we will disclose other material information about our services, fees, conflicts, investment philosophy, and our relationship; those disclosures will be made orally or in various documents, such as our New Account Form and/or documents that describe the specific characteristics and risks of different products (like prospectuses). Some information will be provided to you by our clearing firm.

 

Questions to Ask Your Financial Professional

Given my financial situation, should I choose a brokerage service? Why or why not?

How will you choose investments to recommend to me? What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?

 

What fees will I pay?

The principal, and most common, fees that you will pay for brokerage services are transaction-based commissions, sales fees and markups or markdowns:

·     Depending on the investment product you select, fees can include upfront commissions, as well as fees that are charged on an on-going basis for as long as you hold the investment (“trails”).

·     Buy and sell transactions are charged an upfront commission each time you buy or sell a security; commissions equal a percentage of the transaction amount and vary depending on the type of security. Our firm charges a minimum commission per transaction.

·     Mutual funds charge a sales fee for each buy transaction, and the mutual fund company pays us a portion of that fee. Some of these fees are trails. We charge a flat fee when you sell your mutual fund.

·     If we buy a security like a bond or CD from you or sell a security to you from our account as "principal" we may mark the price up or down respectively, resulting in a profit to us. This is in lieu of charging a commission.

If you have an account with us that is inactive, we charge a flat annual fee.  There are additional fees that may be charged to you, including interest on debit balances, sweep account fees, fees for holding foreign securities, and  clearing firm administration fees such as for transaction processing, account transfers, retirement account maintenance, and termination. You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.

 

Your financial professional will provide you with specific costs when discussing securities transactions, and you will see disclosures about commissions, fees, or markups/downs on trade confirmations, in prospectuses and on our fee schedule. For additional information about our fees please visit www.securitiesresearch.com/fees.

 

Questions to Ask Your Financial Professional

Help me understand how these fees and costs might affect my investments.

If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?

 

What are your legal obligations to me when providing recommendations? How else does your firm make money and what conflicts of interest do you have?

When we provide you with a recommendation, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they affect the recommendations we provide you. Here are some examples to help you understand what this means: margin interest on debit balances--we are paid a portion of that interest; money market and FDIC deposit (“sweep”) accounts--when you are paid monthly interest, we are paid a fee for having invested your cash in these instruments; principal trading--we have an incentive to trade with you as principal, because we make more revenue that way; and volume--the more securities you purchase, the more we will be paid in commissions or other fees. We will provide you with additional information on conflicts of interest when relevant to our business with you.  Please visit www.securitiesresearch.com/fees.

 

Questions to Ask Your Financial Professional

How might your conflicts of interest affect me, and how will you address them?

 

How do your financial professionals make money?

Financial professionals are paid based on the amount of revenue generated through commissions, mutual fund sales fees, markups/downs, cash equivalent balances and assets held. Certain products generate more revenue for our firm than others. Some of our financial professionals are salaried employees only; others are paid a percentage of the sales they generate.

 

Do your financial professionals have legal or disciplinary history?

Yes. Visit https://www.investor.gov/CRS for a free and simple search tool to research us and our financial professionals.

 

Questions to Ask Your Financial Professional

As a financial professional, do you have any disciplinary history? For what type of conduct?

 

Additional Information

For additional information about our services, or for a current copy of this CRS disclosure, please call us at 772-231-6689 or visit www.securitiesresearch.com.

 

Questions to Ask Your Financial Professional

Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer?  Who can I talk to if I have concerns about how this person is treating me?