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Commerce Brokerage Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Commerce Brokerage Services is a brokerage and investment advisory firm serving an array of individual and institutional clients. Something that distinguishes the firm is that it primarily focuses on portfolio management services.

CBSI is a fee-based firm with millions in assets under management (AUM). The firm earns its compensation through asset-based fees and commissions. 

Commerce Brokerage Background

CBSI formed as a registered broker-dealer in 1985. In 2002, the firm began providing investment advisory services. CBSI is also a member of both the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).

The firm is wholly owned by Commerce Bank, which is in turn owned by Commerce Bancshares.

Commerce Brokerage Client Types and Minimum Account Sizes

CBSI serves individuals, high-net-worth individuals, charitable organizations, state or municipal government entities, insurance companies, corporations and other businesses. 

The firm’s account minimums vary based on account type. These minimums generally range from $35,000 to $250,000.

Services Offered by Commerce Brokerage 

CBSI primarily specializes in portfolio management for individuals, banks and thrifts institutions, pension and profit-sharing plans, trusts, estates, charitable organizations, corporations and other business entities. 

Individuals can also receive the following advisory services: (1) analysis of current customer non-advisor investment holdings, 2) non-advisor investment account holdings summary and 3) research on specific investment account related matters.

Commerce Brokerage Investment Philosophy 

CBSI utilizes several securities analysis methods when making investment decisions. These include charting analysis, fundamental analysis and technical analysis

CBSI currently invests mostly in exchange-traded equity securities, as well as U.S. state and local bonds, cash and cash equivalents.

Fees Under Commerce Brokerage 

CBSI offers the following fee schedules for its accounts:

Fund Manager Account Fee Schedule
Amount of assets Annual fee
First $75,000 2.20%
Next $175,000 2.10%
Next $250,000 1.90%
Next $500,000 1.65%
Next $1,000,000 1.45%
Above $2,000,000 1.30%

 

Portfolio Manager Account
Amount of assets Annual fee
First $500,000 2.55%
Next $500,000 2.30%
Next $1,000,000 2.10%
Above $2,000,000 1.90%

 

IMA Annual Equity & Balanced Fee Schedule
Amount of assets Annual fee
First $500,000 2.75%
Next $500,000 2.45%
Next $4,000,000 2.15%
Above $5,000,000 1.80%

 

IMA Annual Fixed Income Fee Schedule
Amount of assets Annual fee
First $500,000 2.15%
Next $500,000 1.80%
Next $4,000,000 1.65%
Above $5,000,000 1.45%

Learn more about advisors' typical costs here.

What to Watch Out For

CBSI has only three regulatory action disclosures listed on its Form ADV. The firm’s most recent disclosure is from 2015 after the firm allegedly violated federal securities laws by selling bonds using false documents. The case was settled with a $40,000 fine and cease-and-desist order. 

Potential investors should also note that CBSI provides both brokerage and investment advisory services. Conflicts of interest may arise if advisors favor commissioned products over non-commissioned investments that more closely align with a client’s goals. CBSI says it mitigates these conflicts by acting as a fiduciary.

Opening an Account with Commerce Brokerage

If you’d like to set up an account with CBSI, you can visit the firm’s office in person, or you can contact a representative at (800) 772-7283.

All information is accurate as of the writing of this article. 

Retirement Planning Tips for Beginners

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How Long $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We weighed potential expenditures for a prospective retiree with a  $1 million nest egg to assess how many years that fund would cover in retirement in America’s largest cities.

We applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in metro areas across the U.S.

We assumed the $1 million would grow at a net annual return of 2% after inflation. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.