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.
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