IOI Capital and Markets, LLC
Customer Relationship Summary
Effective Date: June 1, 2020
IOI Capital and Markets, LLC, (“IOICM”) is a broker-dealer registered with the U.S. Securities and Exchange Commission (“SEC”), and a member of the Financial Industry Regulatory Authority (“FINRA”).
Is a Brokerage Account Right for You?
There are different ways you can get help with your investments. You should carefully consider which types of accounts and services are right for you. We are a broker-dealer and provide brokerage accounts and services rather than advisory accounts and services. This document gives you a summary of the types of services we provide and how you pay. Please ask us for more information. There are some suggested questions on page 2 of this summary.
Relationship and Services
We do not offer accounts in which we make recommendations to you, the retail investor. You may select investments and you will make the ultimate investment decision regarding your investment strategy and the purchase or sale of investments. We do not monitor the performance of your brokerage account.
We offer a limited selection of investments in that we only offer private securities that are issued on our platform. Other firms could offer a wider range of choices.
We may communicate with you through email on a periodic basis with respect to new offerings on the platform as a result of your indications of interest in certain types of offerings or particular industries or sectors.
If you open a brokerage account with us, you will not pay a transaction-based fee, generally referred to as a commission, on any investment transaction.
Our Obligations to You
Our interests can conflict with your interests. We must act in your best interest and not place our interests ahead of yours when we offer securities. When we provide any service to you, we must treat you fairly and comply with a number of specific obligations.
Fees and Costs
Fees and costs associated with investments made will affect the value of an account over time. Please ask your financial professional to give you personalized information on the fees and costs that you pay.
We do not charge you a fee for opening or maintaining a brokerage account with us, nor do we charge you a commission for any securities transaction you make on our platform. Additionally, there are no custody fees charged as a result of any account you open or securities you hold as our customer.
Compare with Typical Advisory Accounts
You could also open an advisory account with an investment adviser, where you will pay an ongoing asset-based fee that is based on the value of the cash and investments in your advisory account. Features of a typical advisory account include:
- Advisers provide advice on a regular basis. They discuss your investment goals, design with you a strategy to achieve your investment goals, and regularly monitor your account.
- You can choose an account that allows the adviser to buy and sell investments in your account without asking you in advance (a “discretionary account”) or the adviser may give you advice and you decide what investments to buy and sell (a “non-discretionary account”).
- Advisers are held to a fiduciary standard that covers the entire investment advisory relationship. For example, advisers are required to monitor your portfolio, investment strategy and investments on an ongoing basis.
- If you were to pay an asset-based fee in an advisory account, you would pay the fee periodically, even if you do not buy or sell. You may also choose to work with an investment adviser who provides investment advice for an hourly fee, or provides a financial plan for a one-time fee.
- For an adviser that charges an asset-based fee, the more assets you have in an advisory account, including cash, the more you will pay the adviser. So, the adviser has an incentive to increase the assets in your account in order to increase its fees.
Conflicts of Interest
We benefit from the services we provide to you. We have a financial incentive to offer you investments because third-party issuers of securities compensate us when you invest in their offerings.
We encourage you to seek out additional information. We have disciplinary events. Visit Investor.gov for a free and simple search tool to research our firm and our financial professionals.
To report a problem to the SEC, visit Investor.gov or call the SEC’s toll-free investor assistance line at (800) 732-0330. To report a problem to FINRA, at (800) 289-9999. If you have a problem with your investments, investment account or a financial professional, contact us in writing at IOI Capital and Markets, LLC, 8 Greenway Plaza, Suite 1515, Houston, TX 77046. For additional information about our brokers and services, visit Brokercheck.Finra.org, www.iownit.us, and your account agreement.
Key Questions to Ask
Ask our financial professionals these key questions about our brokerage services and accounts.
- Given my financial situation, why should I choose a brokerage account?
- What is your relevant experience, including your licenses, education, and other qualifications? Please explain what the abbreviations in your licenses are and what they mean.
- Who is the primary contact person for my account, and is he or she a representative of a broker-dealer? What can you tell me about his or her legal obligations to me? If I have concerns about how this person is treating me, who can I talk to?