# Soft Dollars

*Professional & Ethics — Finicade finance glossary*

Soft dollars are research and services a broker provides in exchange for trading commissions, paid out of client assets rather than the manager's own revenue. The conflict is direct: the manager chooses where to trade, the client pays, and the benefit accrues to the manager. European rules under MiFID II forced research to be unbundled and paid for separately; US practice still permits the arrangement under a safe harbour.

**Also known as:** soft dollar arrangements, bundled commissions, dealing commission

**Related terms:** [Conflict of Interest](https://finicade.com/glossary/conflict-of-interest), [Management Fee](https://finicade.com/glossary/management-fee), [Best Execution](https://finicade.com/glossary/best-execution), [Disclosure](https://finicade.com/glossary/disclosure), [Fiduciary Duty](https://finicade.com/glossary/fiduciary-duty)

Source: https://finicade.com/glossary/soft-dollars