Customer Relationship Summary

Our brokerage services include buying and selling securities.  While we may recommend securities for you to buy or sell it is your ultimate decision as to whether or not to accept the recommendation.  Our brokerage services do not include ongoing investment monitoring.   You make the ultimate decision regarding the purchase or sale of investments.  Our securities offered include publicly traded stocks, municipal & corporate bonds, closed-end funds, exchange-traded funds, limited partnerships and mutual funds.  We do not offer investments in derivative or insurance products such as futures, swaps, options, life insurance, annuities, commodities or any other type of product which derives its value from an underlying asset(s) or is not traded on a publicly available market.  Isaak Bond offers a variety of accounts including individual, joint tenants with rights of survivorship, IRA, Roth IRA, Simple IRA, SEP IRA, corporate and trust accounts.  Before acting upon any recommendation by your financial professional, it is important that you understand the fees and costs, the basis of the recommendation, the level of risk associated with the recommendation, and any conflicts of interest.

Questions you may want to ask your financial professional:

• “How will you choose investments to recommend to me?”
• “What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications mean?”

You will pay fees and costs whether you make or lose money on your investments.  Fees and costs will reduce any amount of money you make on your investments over time.  Please make sure you understand what fees and costs you are paying. 

The fee you pay is based on the specific transaction and not on the value of your account.   With stocks or exchange-traded funds the fee is usually a separate commission.  With other investments, such as bonds, the fee may be part of the price you pay for the investment (called a mark-up or mark-down).  And with mutual funds, a fee typically called a load reduces the value of your investment.  Mutual funds also charge annual management fees in most cases which vary depending on the fund. 

The more transactions in your account, the more fees we will charge you which may create a conflict of interest since we are incentivized to encourage you to engage in transactions.   An explanation of our relationship with, and list of fees charged to you by, our clearing firm, Hilltop Securities (HTS), can be found at the link below then by clicking on “Correspondent Customer Information Brochure.”   These additional fees such as, but not limited to, a miscellaneous trade fee, custodian fees, account maintenance fees, and account inactivity fees, can be found on pages 8 – 10 of the aforementioned brochure. 

When we provide you with a recommendation as your broker-dealer, we are required to act in your best interest and not put our interests ahead of yours.  However, the way we make money creates some conflicts with your interests.  You should understand and ask us about these conflicts because they can affect the recommendations and investment advice we provide you. 

The most common conflict of interest is charging you a commission or a mark-up/mark-down on your transaction since your financial professional is motivated to make money and your goal is to get a return on your investment(s).  Since any fees you pay reduce your return on investment(s), this creates a broker-dealer industry-wide conflict of interest that we try to minimize by keeping our commissions and mark-up/mark-downs competitive.

You may want to ask your financial professional, “Help me understand how these fees and costs might affect my investments.  If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?”

“How might your conflicts of interest affect me, and how will you address them?”

Isaak Bond’s professionals are compensated based upon a percentage of commissions and mark-up/mark-downs and may vary based upon the financial professional’s production level.  As the amount of commissions and mark-up/mark-down paid by a client increase or decrease, the compensation paid by Isaak Bond Investments to its financial professionals increases or decreases.  A number of Isaak Bond financial professionals are also eligible for incentive compensation based upon the amount of revenue they produce.   This creates an incentive for financial professionals to charge commissions or mark-ups/mark-downs at the highest level allowable and to solicit numerous transactions and a disincentive to reduce commissions and mark-ups/mark-downs that will negatively impact the amount of revenue they produce.