Information about Fees and Other Compensation

It is important that you carefully review this information at the time we provide you with a recommendation or solicitation.  Should you have any questions or need any additional information, please contact your Financial Advisor/Private Wealth Advisor or the Manager at the branch office where you maintain your account(s).

General Information

Additional information by investment product

529 Plans

Alternative Investments

Fund Management Fee(s)

Fee charged by the underlying fund sponsor for managing the fund assets and can be based on commitment, invested capital, or Net Asset Value (NAV). Generally, fund management fees range from 1-3%.

Morgan Stanley only receives these fees if a Morgan Stanley entity serves as a fund’s general partner and/or investment adviser.

Program Participation Fee

Fee charged by Program Manager for proprietary feeder hedge fund platform.

The fee is charged by the Program Manager to compensate the Program Manager for certain administrative & reporting services and a portion compensates the Placement Agent for assistance with the sale, distribution, and retention of Interests, and/or shareholder servicing and/or procuring the provision of due diligence services.

For Hedge Premier Funds, fees range from 0.65% to 1.00%.

Trailer Fee and Investor Servicing Fee(s)

Fee paid by the Fund Manager compensating Morgan Stanley for assistance with the sales, distribution, retention of interests, investor servicing, and/or other services provided.

The fee is charged as a variable percentage of the commitment, invested amount, or net asset value of such position, dependent on the size of the position.  The fee ranges from 0.25%-2%.

Manager Revenue Sharing Fee(s)

Fee paid by the Fund Sponsor to Morgan Stanley to maintain and enhance the product platform including the ongoing support of the sales infrastructure. This fee is applicable to certain AI products sold on a placement/brokerage basis or for which Morgan Stanley acts as the placement agent.

The fee is charged as a variable percentage, up to 2.00%, of the aggregate amount committed or invested in the product. 

Performance Incentive Fee(s)

Fee charged by the underlying fund sponsor to the investor for meeting certain criteria.

The fee is charged by Fund’s Investment Adviser for achieving certain performance milestones which is a percentage of profit. The fee generally ranges from 5% to 30% of fund profits and may be subject to a preferred return or high watermark provision set forth in the offering documents for the product.

Morgan Stanley only receives these fees if a Morgan Stanley entity serves as a fund’s adviser.

Referral Fee(s)

Fee paid to Morgan Stanley by the Fund Sponsor. Referral fees are not charged to advisory clients. This is often applied on an ad hoc basis when the firm is not acting as a placement agent or investment adviser and can also be used when referring clients to investment managers who will manage client portfolios of alternative investments.

The fee is either structured as a one-time upfront fee up to 1.00% of the commitment amount, or as an ongoing trail payment of a fixed or varying percentage (up to 0.625% of the aggregate amount of investments of investors who invest in alternative investments managed by or recommended by the Fund Sponsor).

Service Agreements Administrative Fees

Fee paid by Fund Sponsor to Morgan Stanley for the provision of ongoing services relating to an Alternative Investment (AI) position that was purchased by the investor at a prior broker-dealer and subsequently was transferred to Morgan Stanley.

The fee is typically charged as a variable percentage of the commitment, invested amount, or net asset value of such position, dependent on the size of the position.  The fee ranges from 0.25% to 2.0%

Upfront Placement Fees(s)

Fee paid by an investor or the underlying fund sponsor to Morgan Stanley as the distributor for introducing the investor to the Fund.

This fee is a percentage of the commitment or investment amount and changes based on the size of the investment. Generally, the placement fee charged is up to 3%.

American Depository Record (ADRs)

Trading Commission

Commission charged by Morgan Stanley with respect to equity trades when Morgan Stanley serves as a broker for its client accounts with respect to such transactions.

Effective May 1st, 2017 the maximum equity commission amount charged to clients for equity trades is a percentage of Principal Value (PV) ranging from 0.50% to 2.50%, depending on the Principal Value of the trade. The commission for a given equity trade is determined on a marginal basis, meaning clients will be charged progressively lower percentage rates at higher Principal Value amounts. Therefore, the higher the Principal Value of the equity trade, the lower the effective percentage rate that will be applied.

Annuities

Understanding Variable Annuities

Revenue Sharing – Department Trail

For Variable annuity and Index annuity products that are offered, Morgan Stanley seeks to collect a revenue sharing payment from insurance companies. Insurance companies currently pay fees on assets of up to 0.25% per year ($25 per $10,000), calculated quarterly, based upon the aggregate value of variable annuity assets—including assets invested in fixed rate subaccounts within variable annuities—invested in contracts for which Morgan Stanley is designated as the broker-dealer or agent of record. For certain legacy contracts, this rate may be subject to volume discounting (i.e., as the amount of assets increases, the percentage payment for those assets decreases). Revenue sharing payments and Product Support Fees are paid out of the insurance company’s revenues or profits and not from a client’s contract value or the assets invested in the subaccounts. It is important to note that our Financial Advisors/Private Wealth Advisors receive no additional compensation as a result of these revenue sharing payments.

Upfront Commission(s)

Commission paid to Morgan Stanley for sales-related activities in relation to each annuity sold. Commissions vary based on commission option elected, product selected and in some cases the owner's age depending on the type of annuity (e.g. variable, fixed, etc.)

Upfront commissions are calculated as a percentage of the purchase payment.

Trail Commissions

Commission paid to Morgan Stanley by providers for providing ongoing customer support and services for in-force variable annuity contracts. Trail commissions/service fees are payable after a specified time period from the purchase date and provide recurring compensation to Morgan Stanley.

Generally paid on a monthly basis, calculated as one-twelfth of the annual rate and multiplied by the annuity value.

Bank Deposit Program (BDP)

Bank Deposit Program Disclosure Statement

Financial Advisors receive no commissions on Brokerage BDP balances.  The asset –based fee charged within Advisory accounts applies to BDP balances. 

Choice Select

Sliding scale commission is charged monthly in arrears, based on the PV (value of the position traded in the month). The more PV trades throughout the Choice Select year, the lower the commission rate charged for transactions.

Closed-End Funds (CEFs) – Primary

Management and Underwriting Fee

Management and Underwriting Fee(s) are determined as a percentage of total sales by Morgan Stanley of a particular closed end fund. This is Morgan Stanley & Co. revenue and is not shared with Morgan Stanley (generally 0.5%)

Structuring Fee

Structuring Fee is a fee paid to Morgan Stanley Wealth Management from Morgan Stanley & Co. for Morgan Stanley's assistance in the marketing and structuring of new closed end funds.

Structuring Fee(s) are determined as a percentage of the total sales of a particular closed end fund by Morgan Stanley Financial Advisors and Private Wealth Advisors. Pursuant to an intercompany agreement, Morgan Stanley & Co. generally pays Morgan Stanley 75% of the Structuring Fee that it receives for Morgan Stanley providing assistance and consulting on the marketing and structuring of new closed end fund IPOs (generally between 0.5% and 1.35%).

Syndication Fee

Syndicate Selling Fee is a percentage paid to Morgan Stanley from Morgan Stanley & Co. for Morgan Stanley's assistance in the underwriting of new closed end fund IPOs.

Syndicate Selling Fee(s) are determined as a percentage of total sales by the selling syndicate of a particular closed end fund (excluding sales by Morgan Stanley Financial Advisors and Private Wealth Advisors). Pursuant to an intercompany agreement, Morgan Stanley & Co. generally pays Morgan Stanley 25% of the Syndicate Selling Fee that it receives for Morgan Stanley providing assistance to Morgan Stanley & Co. on new closed end fund IPOs where Morgan Stanley & Co. is a lead underwriter (generally between 0.5% and 0.75%).

Closed-End Funds (CEFs) – Secondary

Trading Commission

Morgan Stanley charges commissions with respect to closed end funds trades when Morgan Stanley serves as a broker for its client accounts with respect to such transactions.

Effective May 1, 2017 the maximum commission amount charged to clients for closed end fund trades is a percentage of Principal Value (PV) ranging from 0.50% to 2.50%, depending on the Principal Value of the trade. The commission for a given closed end fund trade is determined on a marginal basis, meaning clients will be charged progressively lower percentage rates at higher Principal Value amounts. Therefore, the higher the Principal Value of the trade, the lower the effective percentage rate that will be applied.

Equities

Trading Commission

Commission charged by Morgan Stanley with respect to equity trades when Morgan Stanley serves as a broker for its client accounts with respect to such transactions.

Effective May 1, 2017, the maximum equity commission amount charged to clients for equity trades is a percentage of Principal Value (PV) ranging from 0.50% to 2.50%, depending on the Principal Value of the trade. The commission for a given equity trade is determined on a marginal basis, meaning clients will be charged progressively lower percentage rates at higher Principal Value amounts. Therefore, the higher the Principal Value of the equity trade, the lower the effective percentage rate that will be applied.

The commission rate charged is dependent on the principal value of the transaction.

Exchange-Traded Funds (ETFs)

Trading Commission

Commission charged by Morgan Stanley with respect to equity trades when Morgan Stanley serves as a broker for its client accounts with respect to such transactions.

Effective May 1, 2017 the maximum commission amount charged to clients for Exchange-Traded Fund trades is a percentage of Principal Value (PV) ranging from 0.50% to 2.50%, depending on the Principal Value of the trade. The commission for a given Exchange-Traded Fund trade is determined on a marginal basis, meaning clients will be charged progressively lower percentage rates at higher Principal Value amounts. Therefore, the higher the Principal Value of the equity trade, the lower the effective percentage rate that will be applied.

Wealth Management Disclosures – Licensing Fee

Fixed Income

When clients purchase or sell a fixed income security in the secondary market in their brokerage accounts, the Firm generally acts as principal or riskless principal in that transaction and clients pay a markup when purchasing the security or a markdown when selling the security.  The markup or markdown includes a sales credit charged by your Financial Advisor as well as any trading spread charged by the Firm’s traders.

Sales Credit

The sales credit charged by Morgan Stanley with respect to fixed income trades when Morgan Stanley serves as a broker for its client accounts with respect to such transactions.

The maximum sales credit charged is calculated using the formula:

Base Price1 x Sales Credit Rate = Maximum Sales Credit

The sales credit rate is a percentage derived from the sales credit schedule applicable to the product being traded.  The sales credit schedule includes the maximum sales credit rate based on a product's complexity, risk and duration. 

1The base price is the price charged by the trader which includes the trader spread.

Tiered Sales Credit

Treasuries, Agencies

·         Buy Pricing on a tiered scale between 0.125% and 1.125% as a percentage of base price

·         Sell Pricing on a tiered scale between 0.125% and 0.50% as a percentage of base price

 Investment Grade Corporates, Traditional Municipal Securities, Certificates of Deposit

·         Buy Pricing on a tiered scale between 0.25% and 2.00% as a percentage of base price

·         Sell Pricing on a tiered scale between 0.125% and 0.50% as a percentage of base price

Treasury Inflation Protected Securities, Investment Grade Non-Dollar Denominated Bonds,2 Investment Grade Convertible Bonds, Investment Grade Step-up Bonds, Agency-issued Mortgage Backed Securities Pass-through Securities

·         Buy Pricing on a tiered scale between 0.375% and 2.00% as a percentage of base price

·         Sell Pricing on a tiered scale between 0.125% and 0.50% as a percentage of base price

Non-Traditional Municipal Securities, Non-Investment Grade Corporates, Agency Issued Collateralized Mortgage Obligations, Private Label Mortgaged Backed Securities/Asset Backed Securities, Structured Investments, Non-Investment Grade Convertible Bonds, Non-Investment Grade Non-Dollar Denominated Bonds,2 Non-Investment Grade Step-Up Bonds

·         Buy Pricing on a tiered scale between 0.75% and 2.00% as a percentage of base price

·         Sell Pricing on a tiered scale between 0.125% and 0.50% as a percentage of base price

Emerging Markets Bonds

·         Buy Pricing on a tiered scale between 0.50% and 1.50% as a percentage of base price

·         Sell Pricing on a tiered scale between 0.125% and 1.00% as a percentage of base price

2Excludes emerging market bonds

Foreign Exchange (FX) - Spot and Deliverable Forwards

FX Commission Schedule:
$0-100k = 150 bps
$100k-500 = 125 bps
$500k-1mm = 100 bps
$1mm-5mm = 75 bps
$5mm-15 mm = 50 bps
$15mm-25 mm = 25 bps
$25 mm - 50 mm = 20 bps
$50 mm - $100 mm = 15 bps
$100 mm or greater = 10 bps

Our affiliate, Morgan Stanley & Co. LLC may charge a markup or markdown (trading spread) in addition to the FX Commission charged by your Financial Advisor.

Portion of Interest Earned Retained

For servicing your foreign exchange account, Morgan Stanley may deduct up to 25% of the interest paid on your foreign exchange position, by JP Morgan Chase or any other bank, with whom Morgan Stanley holds your foreign exchange position.

In the event that a bank holding deposits for Morgan Stanley on your behalf, charges Morgan Stanley a negative interest rate on your currency deposit, Morgan Stanley may debit your account for the amount of negative interest as charged by our depository bank holding your foreign exchange position.

Insurance

Meeting Reimbursement Fee/ Marketing & Product Support Fee

Morgan Stanley may receive payments from insurance carriers to offset expenses incurred by Morgan Stanley for internal sales events and training programs, client seminars, conferences and meetings held in the normal course of business. Morgan Stanley may also seek prepayment or reimbursement for expenses related to administrative and compliance services. The payment varies annually by each insurance carrier. For 2017, five carriers provided payments between $30,000 and $50,000.

Upfront, Renewal and Trail Commission(s)

Insurance carriers pay commissions to either Morgan Stanley Insurance Services, Inc. (“MSIS”) or SBHU Life Agency, Inc. (“SBHU”), depending on the agency for which the selling Financial Advisor is an appointed agent. Commissions vary based on the product selected (e.g. permanent life, term life, long term care, or disability insurance). Commissions may also vary depending on the client’s age. Upfront commissions are calculated based on target premiums. Renewal commissions, if any, are calculated based on renewal premiums paid. Trail commissions, if any, are typically calculated based upon the accumulated cash value of a policy after a specified period of time and may be paid in lieu of renewal commissions

The commission rates below represent gross commissions to Morgan Stanley.

PERMANENT LIFE INSURANCE - upfront commission range from 28% - 106% of first year premium. The renewal commission rate ranges between 2-19% depending on the policy year and carrier. The trail commission rate is up to 0.85%.

TERM LIFE INSURANCE - upfront commission range from 48% - 106% of first year premium. The renewal commission rate ranges between 0%-4%, depending on carrier and the duration of the policy.

DISABILITY INCOME INSURANCE - upfront commission range from 50% - 100% of first year premium. The renewal commission rate ranges between 2-5%, varies by state.

LONG TERM CARE INSURANCE - upfront commission range from 28-80% of first year premium depending on the state. The upfront commission rate in Nevada ranges between 65-80%. The renewal commission rate ranges between 3.5%-9%, varies by state.

HYBRID LIFE/LONG TERM CARE - upfront commission range from 6.66% - 7%. The renewal commission rate ranges between 0%-7% depending on the carrier.

Investment Advisory

Margin Interest Rate

Your interest rate is determined by the size of your Margin loan (or debit) in your Margin account on a daily basis. Interest is based on a Margin Base Lending Rate (BLR) plus or minus a percentage that varies based on your daily close of business net settled debit balance. The current rate is posted on our website at www.morganstanley.com/online .

If the total interest rate charged to you pursuant to the schedule below changes for any reason other than an increase to the BLR, we will give you at least 30 days’ advance written notice.

The current percentage that is added to the BLR is as follows:

$0 – $99,999

+0.750%

$100,000 – $499,999

+0.250%

$500,000 – $999,999

-0.750%

$1,000,000 – $4,999,999

-1.125%

$5,000,000 – $9,999,999

-1.375%

$10,000,000 – $19,999,999

-2.625%

$20,000,000 – $49,999,999

-3.125%

$50,000,000+

-3.625%

Express CreditLine

An Express CreditLine (ECL), offered by Morgan Stanley, can help you unlock the value of your assets and gain quick and efficient access to funds by allowing you to borrow money against the value of qualifying securities in your brokerage account — with the securities in your brokerage account serving as collateral for the loan. ECL is a variable rate revolving line of credit tied to your brokerage account with no minimum draw or facility amount. Pricing is tiered and the interest is based on your outstanding balance.

There are risks associated with using your assets as collateral in a securities-based loan, including possible maintenance calls on short notice. See below for details.

Interest Rates

Interest rate is based on an ECL Base Lending Rate (BLR) plus or minus a percentage, also known as a spread or margin, which is determined by the debit balance amount.

Access Funds via Brokerage Account

An ECL allows you to access funds via the checkbook and debit card tied to your brokerage account. You can also access funds from your ECL by logging into Morgan Stanley Online or working with your branch for other withdrawal options.

Your ECL can be used to purchase real estate, pay tax obligations and purchase luxury items, while avoiding the need to liquidate your securities. Loan proceeds can be used for any suitable purpose except to purchase trade or carry securities or repay debt that was used to purchase trade or carry securities and cannot be deposited into a Morgan Stanley or other brokerage account.

Revolving Line of Credit

ECL is a revolving line of credit with no minimum loan amount that allows you to borrow against eligible collateral, including restricted/control stocks and Morgan Stanley affiliate-issued securities, such as Morgan Stanley stocks.

Money Market Funds

12-b1 Fee

Morgan Stanley receives a shareholder servicing/12b-1 fee from the mutual fund's distributor for providing ongoing services to mutual fund clients, including maintenance of client accounts, responding to client inquiries and providing information about their investments. The fee amount varies based off the fund family and share class purchased.

The fee is calculated as a fixed percentage of the assets under management. Percentages are updated on a monthly basis. The current range is between 0 and 37 basis points (as of June 2017).

Administrative and Record Keeping Fees

Morgan Stanley receives compensation from funds or their affiliated service providers for providing certain administrative services and related services.

Management Fees

Morgan Stanley receives fees for managing the fund's assets - applicable for proprietary mutual funds.

The fee is deducted from the investment amount as basis points based on the investment amount.

For additional information on a particular fund’s payment and compensation practices, please refer to the fund’s Prospectus and Statement of Additional Information. Further information regarding revenue-sharing and administrative service fees is available at: http://www.morganstanley.com/wealth/investmentsolutions/mutualfunds.asp or by calling your Financial Advisor.

Mutual Funds

Mutual Fund Features, Share Classes and Compensation

Revenue Sharing Fund Families

Finder’s Fee

Commission may be paid to an advisor, not Morgan Stanley, by a fund company. It is applicable to front-loaded funds, and varies by fund company.

The fee is calculated as a percentage of the investment amount. The percentage is defined in the prospectus and is usually 1%.

Licensing Fee

Morgan Stanley can serve as the index provider – creating and maintaining the index. Morgan Stanley may receive a licensing fee from the ETF Sponsor for providing access to that index.

The fee is typically calculated on basis points based on the total amount of industry assets in the fund.

Options

Maximum Option Commission Rates

For all Option trades, the grid commission is calculated as the sum of three parts: (1) a percentage rate applied to the Principal Value (PV) of the Option trade, which decreases as the PV goes up; (2) a flat fee per trade depending on the PV; and (3) a per contract charge depending on the number of contracts traded.

The grid commission calculated above is then subject to the following maximum rules:

                    I.            For trades with a grid commission less than or equal to $125.00, the overarching maximum commission is the lesser of (1) 16% of PV or (2) $84.00 per contract

                  II.            For trades with a grid commission above $125.00, the overarching maximum commission is the lesser of (1) 16% of PV, (2) $84.00 per contract or (3) the greater of $125.00 or 5% of PV

Precious Metals

Sales Credit

Advisors have the discretion to charge up to 2% on buys and sells.

Additional fees may be charged for the purchase, sale, storage or shipment of your precious metals. Morgan Stanley provides storage for your precious metals upon your request. Customers buying precious metals through Morgan Stanley Wealth Management or delivering previous metals into their Morgan Stanley Wealth Management accounts for storage or otherwise will be charged a service fee. Service fees are subject to change without notice.

Precious Metals Storage and Delivery Fee Schedule

Morgan Stanley Wealth Management may buy and sell for its own account the physical precious metals that back “unallocated” holdings and may profit by such use in addition to the mark-ups or commissions it charges on purchases and sales.

Preferreds

$1000 Par Preferreds

Refer to fixed income section for fee information.

Other Preferreds

Type of Preferred As Riskless Principal As Agent As Principal
Stock/Trust/Hybrid/$25 par Sales credit max: 2.25% (Buy) or 1.75% (Sell) Ranging from 0.50% to 2.50%, depending on the Principal Value of the trade Sales credit max: 2.25% (Buy) or 1.75% (Sell)
Convertibles Ranging from 0.50% to 2.50%, depending on the Principal Value of the trade Ranging from 0.50% to 2.50%, depending on the Principal Value of the trade Ranging from 0.50% to 2.50%, depending on the Principal Value of the trade

If the firm trades as principal or riskless principal, a desk spread may be charged. Refer to fixed income section for more information.

Structured Investments

Primary Structured Investments

For new issue structured investments (including structured notes and CDs), the offering price includes costs and fees associated with issuing, selling, structuring and hedging the security, including a fee to Morgan Stanley and its Financial Advisors for distributing the new issue (typically called a selling concession). 

The selling concession is a percentage of the underwriters’ commissions and fees and includes a fixed sales commission as well as a structuring fee, which are described further below. 

The offering price and a description of the costs and fees associated with a security can be found in the offering document. 

Sales Commission

Morgan Stanley receives a sales commission when it distributes new issue structured investments.  Sales commissions range from 0.75%-3.0% based upon the structured investment’s tenor, structure, underlying asset and other factors.

Structuring Fees

Morgan Stanley receives a structuring fee for its role in the structuring of the structured investment.

The structuring fee is up to 0.5% of the transaction amount.

Issuing and Hedging Cost

The offering price of a new issue structured investment includes the costs of issuance and the costs of carrying out hedging activities related to the structured investments by one or more of our subsidiaries and/or third-party underwriters.  See the offering document for more information.

Licensing and Index Fees

For structured investments linked to the performance of an index, fees generally include licensing fees for use of the index, which may be paid to Morgan Stanley or its affiliates for indexes owned or sponsored by them.

Additionally, certain structured investments are linked to proprietary indexes that may contain embedded servicing and rebalancing costs. See the offering document for more information. 

Secondary Structured Investments

When clients purchase or sell a Structured Investment in the secondary market in their brokerage accounts, Morgan Stanley generally acts as principal or riskless principal in that transaction and clients pay a markup when purchasing the security or a markdown when selling the security.  The markup or markdown includes a sales credit charged by your Advisor as well as any trading spread charged by the Morgan Stanley traders.

Please see the Fixed Income Sales Credit and Tiered Pricing sections, which include structured investments

Our affiliate, Morgan Stanley & Co. LLC may charge a markup or markdown (trading spread) in addition to the Commission charged by your Advisor.

Syndicate (Fixed Income and Equity)

New Issue / Primary Offerings

The following information relates to new issue syndicated offerings where Morgan Stanley or its affiliates are acting as underwriter, placement agent or distributor.

For new issue syndicated offerings, clients pay the offering price agreed to or set by the issuer, which is stated in the offering document. Morgan Stanley and its Financial Advisors receive a fee for new issue syndicated offerings, typically called a selling concession or discount, from the underwriter(s) who bring the security to market. This fee is a percentage of the underwriter’s commissions and fees, which are included in the initial offering price paid by the client and stated in the offering document.

Selling concessions range in amount by product and are typically subject to a maximum percentage of the new issue price. For example, for new issue equity syndicated offerings, the selling concession can be up to 4.5% for equity IPOs, while the maximum for other offerings and products is typically less than this.

For new issue CDs (other than structured CDs), Morgan Stanley will receive a portion of the placement fee that the underwriter receives from the issuer. This fee is described but not stated in the disclosure statement for the CD. The placement fee is built into the initial offering price paid by the client, and can be up to 2% of the CD face value amount, but is typically much less.

For new issue structured investments (including structured notes and CDs), the offering price includes costs and fees associated with issuing, selling, structuring and hedging the security. The offering price and a description of the costs and fees associated with a security can be found in the offering document. For structured investments linked to the performance of an index, fees generally include licensing fees for use of the index, which may be paid to Morgan Stanley or its affiliates for indexes owned or sponsored by them. Please see the Structured Investments – Primary section for additional information.

Certain new issue syndicated offerings may be variable price offerings, meaning that they are offered from time to time in one or more negotiated transactions at varying prices to be determined at the time of each sale. For structured investments variable price offerings, the underwriters will pay varying discounts and commissions to Morgan Stanley and its financial advisors depending upon the transaction, and the maximum discount or commission that can be paid will be stated in the offering document. For registered equity block transactions, the underwriters will pay a non-variable sales credit to Morgan Stanley and its Advisors.

When clients participate in a new issue offering through Morgan Stanley where Morgan Stanley is not a distributor but one of our affiliates is acting as underwriter or placement agent, Morgan Stanley may receive a referral fee.

When Morgan Stanley facilitates a client purchase of a new issue security where Morgan Stanley and its affiliates are not acting as underwriter, placement agent or distributor, Morgan Stanley may or may not receive a fee from the third party underwriter, placement agent or distributor (which is a portion of the fee paid to the third party as disclosed in the applicable offering document) and/or add sales credit to the purchase price.

For more information, please refer to the offering document for a particular security.

Transactional Futures

Commission

Fee charged at the Financial Advisor's discretion. A maximum of $45 per lot per side (buy/sell) may be charged.

Execution

Execution Costs vary by point of execution:

  • RJ O’Brien - 75 cents
  • Trading Technologies - 0.30 cents
  • Bloomberg Tradebook - 0.30 cents
  • Clients may execute through outside brokers. Those fees are negotiated between the outside broker and client

Clearing

There is a .20 cents per contract cost for futures contracts cleared at Morgan Stanley & Co. LLC.

Unit Investment Trusts (UITs)