Item 1. Introduction
Benchmark Securities, LLC (“BMKS”) is registered with the Securities and Exchange Commission (SEC) as a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). Brokerage and investment advisory services and fees differ, and that it is important for you to understand the differences. Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
Item 2. Relationships and Services
“What investment services and advice can you provide me?”
Description of Services and Monitoring: We offer brokerage services only to retail investors who are associated with the Firm. This includes recommending various types of securities transactions including corporate bonds, municipal securities, U.S. government securities, mortgage-backed securities, and equity securities. BMKS may also act as an underwriter or selling group participant for corporate and municipal bonds. Our engagement with you and any recommendation to purchase, sell, or hold, is for the particular point in time that we discuss the recommendation with you. We do not provide monitoring services for your brokerage accounts.
Investment Authority: You, the retail investor, make the ultimate decision regarding the purchase or sale of investments. We do not exercise discretionary investment authority in your brokerage account (i.e., make decisions to buy or sell your investments without your direction). This means that you are responsible for reviewing your account and investments to make sure your investment mix is appropriate for you and for deciding whether to follow our investment recommendations.
Limited Investment Offerings: We do not make available or offer advice with respect to proprietary products. We offer a limited menu of products including corporate bonds, municipal securities, U.S. government securities, mortgage-backed securities, and equity securities.
Account Minimums and Other Requirements: You do not need to have a minimum amount to invest to open a brokerage account with us, but some of the investments you may purchase through us may have minimum investment requirements. For more information regarding minimum investment requirements, please refer to the prospectus or offering documents for your investment.
For Additional Information: More detailed information about our Firm, including the products and services offered please visit us at: https://benchmarksecuritiesllc.com/.
Conversation Starters*
- Given my financial situation, should I choose a brokerage service? Why or why not?
- 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?
Item 3. Fees, Costs, Conflicts, and Standards of Conduct
“What fees will I pay?”
Description of Principal Fees and Costs: BMKS’ fees are based on the types of services we provide. Generally, you will pay transaction-based fees for each transaction. These will include a commission based on the value of the transaction, or a flat fee per transaction. For some transactions, particularly fixed income securities, you will be charged a mark-up on purchases or a mark-down on sales. For example, when you purchase a security from us, the price you pay will include a markup from the price at which we purchased the security or the current market price. Conversely, when you sell a security through us the price you receive will be less than the price at which we will sell the security in the market. Commissions, markups and markdowns will be disclosed in writing on the transaction confirmation or product prospectus. The timing of the compensation we receive will differ by product. The more we trade in your account, the more you will pay in fees, and we therefore have an incentive to encourage you to trade often.
Description of Other Fees and Costs: In addition to the foregoing fees, our clearing and custody partner, Hilltop Securities, Inc., may assess certain fees associated with your brokerage account such as transaction fees, custodial fees, liquidation fees, ticket charges, termination fees, account maintenance fees, postage and handling fees. A listing of these fees is provided to you at account opening or upon request.
For Additional Information: You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce the amount of money you make over time. Please make sure you understand what fees and costs you are paying. For detailed information regarding all of the fees associated with your account, please refer to your transaction confirmations, prospectus or offering documents, and monthly or quarterly account statements, as applicable.
Conversation Starters*
- 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?
“What are your legal obligations to me when providing recommendations? How else does your firm make money and what conflicts of interest do you have?”
When we provide you with a recommendation, we have to act in your best interest and not put our interest ahead of yours. At the same time, 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 we provide you. Here are some examples to help you understand what this means:
- When we purchase securities for you as your agent, we charge a commission on the transaction. This creates the incentive for us to trade more frequently in your account.
- We may engage in principal trading where we sell to or purchase from you a security from our own account. This creates the incentive for us to increase the markup or markdown to you or to trade more frequently in your account.
- We have arrangements with our clearing firm to share in certain fees and charges derived from your account including margin interest, money market interest, transaction processing fees and other administrative charges which creates an incentive for us to increase the use of margin or trading in your account.
Conversation Starters*
- How might your conflicts of interest affect me, and how will you address them?
For Additional Information: For more detailed information about our Firm, please visit us at: https://benchmarksecuritiesllc.com/.
“How do your financial professionals make money?”
Description of How Financial Professionals Make Money: The way our financial professionals make money creates conflicts of interest. Financial professionals are generally compensated based on a share of the commissions and other fees charged to your account. As stated previously the way we make money creates an incentive for our financial professionals to engage in excessive trading, increased use of margin, or engaging in transactions that may not be in your best interest. You should be aware of these conflicts as they provide an incentive for BMKS and its financial professionals to place their interest ahead of yours. However, we have established supervisory policies, procedures and controls designed to eliminate, mitigate or disclose these conflicts to you.
Item 4. Disciplinary History
“Do you or your financial professionals have legal or disciplinary history?”
Yes - We invite you to visit Investor.gov/CRS for a free and simple search tool to research our Firm and financial professionals.
Conversation Starters*
- As a financial professional, do you have any disciplinary history?
- For what type of conduct?
Item 5. Additional Information
We encourage you to seek out additional information about our brokerage services. Please call BMKS at (407) 960-2700 to speak with us directly and request a copy of this relationship summary.
Conversation Starters*
- Who is my primary contact person?
- Is he or she a representative of an investment adviser or a broker-dealer?
- Who can I talk to if I have concerns about how this person is treating me?
* Consider asking your financial professional these questions.