Springfield, Ill. – Thousands of Illinois investors will begin seeing money returned to their accounts within weeks as a multi-state crackdown on excessive trading fees forces major brokerage firms to pay back nearly $950,000.
According to the Illinois Secretary of State’s office, five firms—Edward Jones, LPL Financial, RBC, Stifel, and TD Ameritrade—agreed to a $19 million settlement after regulators found they charged disproportionately high commissions on small-dollar stock trades over a five-year span.
State officials say the practices affected more than 45,000 transactions tied to Illinois clients at Edward Jones alone, with smaller but widespread impacts across the other firms. In total, at least $948,551 will be returned to Illinois investors, with payments rolling out through spring and summer depending on the firm.
Edward Jones accounts for the largest share, returning more than $654,000, while LPL Financial and RBC will repay $124,000 and $99,000 respectively. Stifel and TD Ameritrade will distribute smaller amounts tied to thousands of transactions.
Investors do not need to take action immediately. Firms are required to notify eligible clients by mail before issuing payments. If addresses are outdated, funds could be transferred to the state’s unclaimed property division.
State regulators say the enforcement sends a clear signal as oversight tightens on fee structures that can erode smaller portfolios. Additional compliance checks and investor alerts could follow as restitution continues through the summer.
