Montana Commissioner of Securities and Insurance James Brown announced Tuesday a series of national settlements with five major broker-dealer firms over allegations they charged excessive commissions on small retail equity transactions, in violation of state securities laws.
The firms—Edward D. Jones & Co., L.P. (Edward Jones), LPL Financial LLC, RBC Capital Markets, LLC, Stifel, Nicolaus & Company, Inc., and TD Ameritrade Inc. (now part of Charles Schwab)—agreed to the settlements following a coordinated investigation by state securities regulators from Montana, Alabama, Iowa, Massachusetts, Missouri, Texas, and Washington.
“These coordinated settlements send a clear message both that excessive commissions on small trades by Main Street customers are unacceptable and that investor protection remains a top priority for state securities regulators,” Brown said. “We encourage all Montana investors to review their account statements and contact our office if they have questions about commissions charged on their trades.”
The multi-state task force, which included the Montana State Auditor’s Office, launched its investigation in July 2023 after identifying a troubling pattern: broker-dealers were imposing minimum commissions on small principal equity trades that frequently exceeded 5% of the transaction amount.
Between 2018 and 2025, the five firms collectively charged excessive commissions on hundreds of thousands of transactions, resulting in millions of dollars in overcharges to everyday retail investors nationwide.
While these five firms have agreed to settlements, investigations remain ongoing into additional broker-dealer firms suspected of similar practices.
By: DNU staff