Additional Disclosures > Fees and Product Costs

When We Act as Your Broker-Dealer

Every time you buy or sell an investment you will pay a fee called a commission or markup. You may pay other fees and costs related to services and investments. From a cost perspective, you may prefer a transaction‐based fee if you do not trade often or if you plan to buy and hold investments for longer periods of time. We believe it is important that you understand the account service fees and commissions that may be charged with respect to your account. These costs are typically printed on your confirmations or quarterly statements. Account service fees in your brokerage account are generally charged on a per-transactions basis. Your associated person may also charge a commission on a per transaction basis.

USA Financial is an introducing broker-dealer with a clearing agreement through Pershing. We rely on Pershing for our execution, clearing and custody operations. Your broker determines the commission for each trade. Generally, these commissions range from 2-3%. USA Financial imposes a ticket charge that ranges between $20-49 per position and dependent upon the security traded to cover costs associated with the trade. The commission and the ticket charge make up the transaction charge. Under no circumstance will the transaction charge exceed 5%. Pershing may charge additional fees for custody of your account. We encourage you to ask your broker about those fees, and how, when, and why they are charged.

USA Financial does not have minimum account balance requirements for opening or maintaining accounts, or for establishing a relationship with the firm. Our custodian, Pershing, charges annual account maintenance fees for qualified accounts that range from $12 - $125 depending on account type. In addition, Pershing charges transfer fees, subscription fees, redemption fees, registration fees, and administration fees, depending on the product held in the account. Finally, Pershing charges a $95 termination fee for all retirement accounts. There are no maintenance fees for non-qualified accounts, however, Pershing charges a $0.75 fee for paper statements, and a $75.00 transfer fee for full in-kind transfers that close your account.

The fees Pershing charges for maintaining qualified accounts are as follows:

While we take reasonable care in developing and making recommendations to you, securities involve risk, and you may lose money. There is no guarantee that you will meet your investment goals or that our recommended investment strategy will perform as anticipated. Our principals supervise all of your broker's investment recommendations. We require our brokers to document the basis for their recommendation and submit that to the firm for review. In the event that we identify a recommendation that does not align with your investment profile or strategy, we will contact your broker for clarification.

USA Financial will send you a written report regarding your account upon account opening. The report will document the basic information you provided on your client profile — such as, net worth, annual income, and investment objective. USA Financial Securities uses this information to perform its initial and ongoing suitability reviews, therefore, it is important to review this report and if you see any information that does not appear to be accurate, contact USA Financial Securities immediately.

When We Act as Your Investment Adviser

USA Financial Securities' representatives charge fees for financial planning services. Fees are assessed as either an hourly fee, a flat fee, or a project-based fee. Hourly fees cannot exceed $350/hour. Flat fees can range from $100 up to $20,000 depending on the complexity of the financial situation and the estimated hours required to complete the plan. Prior to paying any fees, you must sign USA Financial Securities' investment advisory agreement. The fee is payable upon signing the agreement. USA Financial Securities' representatives can request that you provide an initial deposit, but the initial deposit cannot exceed $1200.

Financial Planning Fee Refund Policy

USA Financial Securities' refund policy permits you to request a 100% refund of all hourly and/or project fees paid within one year of signing the agreement. However, this refund policy does not apply to asset under management fees or fees related to the USA Strategic Portfolio program, referenced in our wrap-fee brochure.

Wrap Fee Program

USA Strategic Portfolio accounts are charged a monthly fee, in arrears, based on the assets under management. Fees may be negotiated between you and your investment adviser representative, provided that the negotiated fee is within the appropriate assets under management fee range.

Account Value (Assets Under Management)	Annualized Management Fee
$15,000 but less than $99,999	2.70% - 2.00%
$100,000 but less than $249,999	2.45% - 1.75%
$250,000 but less than $499,999	2.20% - 1.50%
$500,000 but less than $999,999	1.95% - 1.25%
$1,000,000 or more	1.40% - .70%

USA Financial Securities does not utilize portfolio managers — your investment adviser representative will manage your portfolio based on your stated needs, objectives, and risk tolerance. Your investment adviser representative receives between 70 and 100 percent of the annualized management fee, which may be an incentive to recommend this wrap-fee program over other programs or services. However, USA Financial Securities monitors trading frequency, and if we do not believe your account activity warrants the wrap-fee, we will request that you move your USA Strategic Portfolio account to a Pershing brokerage account.

Because wrap-fee programs charge a single fee for a range of services that could potentially be obtained separately, it is possible that our wrap fee may be more or less than the cumulative fees you would be charged if you obtained each service separately.

The Annualized Management Fee, above, includes all fees and charges related to Pershing's and USA Financial Securities' services, except for brokerage charges and termination fees for IRA and qualified retirement plan accounts. Brokerage charges are assessed on each trade, whether it is a buy or sell. The brokerage charges are, as follows:

Stocks	$20* + $.025 per share
Mutual Funds	$20*
Unit Investment Trusts (UIT)	$20*
Corporate Bonds	$20* + $1.00 per share
Bonds (other than corporate)	$20*
CDs and ELCDs	$40*
Mutual Fund Systematic Withdrawals	$1.00 confirmation fee

Please Note: *There is a $2 confirmation fee on all buys and sells (except for mutual fund systematic withdrawals, as referenced above). There is also a $10 mutual fund surcharge, assessed by the mutual fund company, on a limited number of mutual funds.

In addition to the Annualized Management Fee and brokerage charges, Pershing also charges a $35 annual maintenance fee and a $75 termination fee on all IRA and qualified retirement plan accounts. These fees apply to all IRA and qualified retirement plan accounts at Pershing, not just accounts on the USA Strategic Portfolio program. Therefore, the $35 annual maintenance fee and the $75 termination fee are not included in the USA Strategic Portfolio management fees, however, these fees will appear on your account statement. Pershing will deduct administrative charges from the management fee.

Formulas Subadvisers

USA Financial Formulas serves as a sub-adviser on advisory accounts. You are not obligated to use Formulas as a manager, it is simply an option available for those clients who would like active management and access to Formulas' strategies through USA Financial Securities. Accounts using Formulas as the subadviser will receive Formulas' disclosure brochure, and will be subject to the following fee schedule:

Account Value	AUM Formula Fee	Portfolio Fee	Combined Total Fee
$50,000 but less than $500,000	1.44%	1.44%	2.88%
$500,000 but less than $1,000,000	1.32%	1.32%	2.64%
$1,000,000 but less than $2,000,000	1.20%	1.20%	2.40%
$2,000,000 but less than $3,000,000	1.08%	1.08%	2.16%
$3,000,000 but less than $4,000,000	0.96%	0.96%	1.92%
$4,000,000 but less than $5,000,000	0.84%	0.84%	1.68%
Larger accounts may be negotiable based upon size.	0.84%	0.72%	1.56%
	0.84%	0.60%	1.44%
	0.84%	0.48%	1.32%

Account Requirements & Types of Clients

Your account value must be at least $15,000 to participate in the USA Strategic Portfolio program. Exceptions may be made, solely at the Firm's discretion, based on such factors as prior or anticipated investment activity. USA Financial Securities monitors account values and will remove billing on your account if the account cannot maintain values exceeding $15,000. Billing will be reinstated once your account exceeds $15,000.

The USA Strategic Portfolio program services individual, corporate, and trust accounts. Because the USA Strategic Portfolio program charges a quarterly fee, regardless of whether you make trades in your account during a given quarter, the program is designed to accommodate accounts with moderate to high trading frequency. Therefore, as referenced above, USA Financial Securities monitors trading frequency, and if we do not believe your account activity warrants the wrap-fee, we will request that you move your USA Strategic Portfolio account to a Pershing brokerage account.

Formulas Account Requirements

Formulas requires a minimum account size of $50,000 for those clients utilizing Formulas as a subadviser. Please note that clients investing directly with Formulas only have a $35,000 minimum account requirement. Exceptions to this requirement may be made, solely in our discretion, based on a variety of factors, including but not limited to, prior or anticipated investment activity and family or employment relationships. We may also, in our discretion, aggregate related accounts in the same household in determining whether the account minimum has been met. Minimums may be negotiated depending on your personal circumstances. Furthermore, Formulas also requires that clients invest at least $15,000 in each model.

Fee Schedules and Investing Cost charts

Investing, like other services, comes with a cost. This is true any time you purchase an investment product or hire a financial professional to manage your investment portfolio. Financial professionals charge for the value of their services, and the fee charged is dependent upon the specific type of investment you choose. Along with many other factors you think about when choosing either a financial professional or a particular investment, USA Financial wants to help you understand and compare the fees you might be charged. It could save you money in the long run.

How do I know what I’m being charged?

When you choose an investment or open a new account, your financial professional will provide you with product specific documents for the investment you select. These documents may include account opening documents, account statements, confirmations, or other types of documents. Before you chose an investment you should have been provided a prospectus, various disclosure documents, or statement of additional information. Read these documents. They will disclose to you the types and amounts of fees you will pay. If have questions about the fees, ask your financial professional, so that you understand what, when, and how you will be charged.

What questions should I ask my financial professional about fees?

What are all the fees relating to this account? Do you have a fee schedule that lists all of the fees that will be charged for investments and maintenance of this account?
What fees will I pay to purchase, hold, and sell this investment? Will those fees appear clearly on my account statement or confirmation? If those fees don’t appear on my account statement or my confirmation, how will I know about them?
How can I reduce or eliminate some of the fees I’ll pay? For example, can I buy the investment directly without paying a financial professional? Can I pay lower fees if I open a different type of account?
Do I need to keep a minimum balance to avoid certain fees?
Do the fees change based on the length of time I hold the investment? Or do they change based on other factors?
Is there a different fee structure that is more advantageous based on my short- or long-term goals for this investment?
Are there any other transaction or advisory fees? Account transfer, account inactivity, wire transfer fees, or any other fees?
How do the fees and expenses of the product compare to other products that can help me meet my objectives?
How much does the investment have to increase in value before I break even?

What questions should I ask about my financial professional’s compensation?

How do you get paid? By commission or fees? How are commissions or fees determined? Do they vary depending on the amount of assets you manage?
Do you get paid through means other than through commissions or fees based on the amount of assets you manage, and if yes, how?
Can I choose how I pay you?

What types of fees are there?

There are various types of fees, but the most common types are transaction fees or ongoing fees. Transaction fees are charged each time you buy or sell a security, like a stock, bond, or mutual fund. Ongoing fees are charges that you incur regularly, such as an account maintenance fee or a management fee. Transaction fees reduce the overall value of your investment each time you buy, sell, or exchange an investment. Ongoing fees can also reduce the value of your investments. Over time, ongoing fees may reduce the value of your investment portfolio as they are charged on the principal and any additional return earned on the account. In some circumstances, as the investment grows, so does the total amount of ongoing fee you pay.

What are some examples of transactions fees?

Commissions: If you buy or sell stock through a registered representative, you will be charged a commission on the trade. A commission compensates the registered representative and the Broker-Dealer to act as your agent in the securities transaction.
Markups: When a broker-dealer sells you securities out of its own inventory, it is acting as a “principal” in the transaction. Broker-dealers may sell the security at a price higher than the market price. The difference between these prices is called the “markup.” It may also buy a security from you at a price lower than the market price. The difference is called the “markdown.” USA Financial generally does not engage in principal transaction, so we do not markup or markdown securities.
Sales Loads: Most mutual funds charge a fee called a sales load. The sales load is similar to a commission and compensates a registered representative for selling you the mutual fund. The Sales load might be charged at the time you purchase the mutual fund. This is called a front-end sales load. In the alternative, if you sell a mutual fund before a specified holding period you may be charged a back-end sales load at the time of sale. For more information, please see our Mutual Fund Disclosure.
Surrender Charges: Some products, like variable annuities and fixed indexed annuities, charge a transaction fee if you withdraw your money early. The time frame is typically between six to eight years, but can be as much as twelve years, from the date you purchased the product. The charge compensates your financial professional for selling you the product. Generally, a surrender charge is a percentage of the overall investment, and gradually declines over the specified period.

What are some examples of ongoing fees?

Investment advisory fees/management fees: If you use an investment adviser to manage your portfolio, your adviser will be paid an ongoing fee based on the value of the assets held in your portfolio.
Annual operating expenses: Mutual funds, ETFs, and other investment products are created and managed by investment advisers and investment companies. The costs of managing and marketing investments are passed on to investors, in the form of fees deducted from the funds’ assets. These include management fees, 12b-1 fees, distribution fees, and other various expenses. These are often referred to as a fund’s expense ratio, as identified as a fund’s “total annual fund operating expense.
401(k) Fees: These are charged for the expense of operating and administering a 401(k) plan, and subsequently passed on to plan participants.
Variable Annuity Fees: Variable annuities charge a mortality and expense fee. This fee is charged by the issuing insurance company to cover the cost of a death benefit, and expenses of other insured income guarantees that the annuity contract might include. In addition, if you elect a rider or other optional feature of a variable annuity, you will be charged a fee. You will also be subject to any annual operating expenses of the investments held in the variable annuity.

We have broken down products to provide a general overview and comparison of fees by product. Transaction fees and ongoing fees for all investments vary. The fees below are not actual fees but general estimates for illustrative purposes – should you choose one of these products, your fees could be different and will be reflected on the account opening documents you receive. These fees do not represent the actual costs associated with any specific product or account. In addition, other expenses, such as brokerage fees and custodial fees may differ depending upon the custodian where you chose to hold your investment. Please read the prospectus, contract, account opening documents, or investment advisor contract for fees charged for fees associated with the specific product you purchase.

Product Type	Class	Transaction Fees	Ongoing Fees
Brokerage Account	Equity	2-5% per trade	$12-58.00 (custodial fees)
Variable Annuity*	Insurance / Security	7-10% (surrender charges)	0.6%-3%
Fee Based Account	Investment Advisor	0%	1-3%
Third Party Asset Manager	Investment Advisor	0%	1-3%
401(K)	Investment Advisor	0%	0.2%-5%
Mutual Funds	Investment Company	0-5% (Sales loads)	0.25-1.5% (operating expenses)
Interval Funds	Investment Company	0-5.75%	1-3.45%
Real Estate Investment Trusts (Non-Traded) & Business Development Companies	Alternative Investment	0-6%	0.5 -5%
FIA*	Insurance	4-14% (surrender charges)	0-1.25%

* Ongoing fees for annuities tend to be higher than other investment vehicles. This is due, in part, to the insurance options offered by these products that are not offered by other investment vehicles. Most products offer a standard death benefit — often the return of premium. Other annuities offer optional enhancements called "riders," that are available on your annuity contract at an additional cost. They allow your financial advisor to tailor your contract and help protect what is most important to you.

A "surrender charge" is a type of sales charge you must pay if you sell or withdraw money from a variable annuity or fixed indexed annuity during the "surrender period" — a set period of time that typically lasts six to eight years after you purchase the annuity. Surrender charges will reduce the value of — and the return on — your investment. For more information about surrender charges and other expenses associated with variable annuities, please read the Securities & Exchange Commission's publication, Variable Annuities: What You Should Know.