There are important differences in fees and costs associated with brokerage services and investment advisory services. 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 primary fees and costs you will incur are transaction-based fees, such as commissions. Depending on your investments, we will charge brokerage commissions or similar fees to your account (hereinafter referred to as “brokerage commissions”), or we will receive sales commissions and/or sales concessions or similar fees (hereinafter referred to as “sales commissions”) from the investments you buy.

We charge you a brokerage commission each time you instruct us to buy or sell investment products we offer on the secondary market in your brokerage account, such as stocks, ETFs, ETNs, closed-end funds, REITs, or options.

When you buy or sell certain other investments, including bonds, structured products, and CDs, we typically charge your account a “mark-up” or “mark-down” adjustment from the market price, meaning we keep the difference as our fee. Mark-ups and mark-downs are also charged on “principal” trades for various security types (including equities), meaning where you buy investments from us, or sell investments to us, rather than a third party.

Where we distribute/sell newly issued shares of individual equities (stocks), bonds, mutual funds, UITs, closed-end funds, REITs, structured products, and alternative investment funds, instead of brokerage commissions we receive sales commissions from the underwriter, the funds, or their sponsors. For some, we only receive up-front sales commissions. For others, we also receive ongoing payments such as “trailing” commissions as long as you hold them. Insurance companies also pay us sales and trailing commissions for selling annuities and other insurance products.

D.A. Davidson generally shares the brokerage commissions, mark-ups and mark-downs, and sales commissions we receive with our financial professionals. However, D.A. Davidson also receives certain other types of compensation that we do not share with our financial professionals. For example, we do not pay our financial professionals any portion of the compensation we receive from the third-party banks that participate in our cash management program, which is available to you if you choose an account with our Firm.

Some investment product sponsors contribute to or reimburse D.A. Davidson for the cost of educational and marketing events for our clients and financial professionals. Subject to approval by our Firm, others pay for travel, meals, entertainment and attendance at conferences, training events, and due diligence trips for our financial professionals, but these payments are not made to our financial professionals directly.

The payments summarized above create incentives for us to recommend that you trade often, make large trades, and invest in specific products in your brokerage account, for which we receive more compensation and other benefits.

Other Fees and Costs

For both brokerage services and investment advisory services (other than financial planning, Davidson Private Wealth Services, and retirement plan services), you will pay some additional charges. Examples include management, distribution, and administrative fees charged by investment funds, fees charged within annuities and other insurance products, handling fees, wire transfer fees, fees for transferring your account to another firm, IRA maintenance fees, and charges for non-publicly traded securities or special services you request. More detailed information on these fees and costs is described in our Fee and Services Information disclosure found at dadavidson.com/Disclosures. Additionally, if we provide services to you with respect to investments that are not within our custody, your third-party custodian will likely charge you additional custody and brokerage fees.

For additional information about fees and costs, please visit dadavidson.com/Disclosures to review the Regulation Best Interest Disclosures, the Form ADV Part 2A Firm Brochure, and the Form ADV Part 2A-1 Wrap Fee Program Brochure.

D.A. DAVIDSON & CO.

Everett, WA 98201-3536

Daniel Joseph Leach

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