Portfolio Strategies Inc

Item 5           Fees and Compensation

   A.
                                    INVESTMENT ADVISORY SERVICES
         If a client determines to engage the Registrant to provide discretionary investment advisory
         services on a fee basis, the Registrant’s annual investment advisory fee shall be based upon
         a percentage (%) of the market value and type of assets placed under the Registrant’s
         management (generally between 0.80% and 2.50%). The Registrant does not determine the
         percentage advisory fee payable except to the extent that the current maximum annual
         advisory fee is 2.50%. The referring broker-dealer and/or investment adviser determines
         whether the client will pay the maximum or some lesser fee percentage. The client remains
         free to negotiate the advisory fee with the referring broker-dealer and/or investment
         adviser. The Registrant shall pay a portion of the advisory fee to the referring broker-dealer
         and/or investment adviser. Certain clients are subject to legacy fee schedules which differ
         from those described herein (see “Legacy Fee Arrangements” below for more information).

         Fee Dispersion: As indicated above, Registrant shall receive an investment advisory fee
         based upon a percentage (%) of the market value of the assets placed under management.
         The referring broker-dealer and/or investment adviser determines whether the client will
         pay the maximum or some lesser fee percentage. The client remains free to negotiate the
         advisory fee with the referring broker-dealer and/or investment adviser. As a result, similar
         clients could pay different fees, which will correspondingly impact a client’s net account
         performance. Moreover, the services to be provided by the Registrant to any particular
         client could be available from other advisers at lower fees. All clients and prospective
         clients should be guided accordingly.

   B. Clients may elect to have the Registrant’s advisory fees deducted from their custodial account.
         Both Registrant's IAA and the custodial/clearing agreement may authorize the custodian to
         debit the account for the amount of the Registrant's investment advisory fee and to directly
         remit that management fee to the Registrant in compliance with regulatory procedures. In the
         limited event that the Registrant bills the client directly, payment is due upon receipt of the
         Registrant’s invoice. The Registrant shall deduct fees and/or bill clients quarterly in advance,
         based upon the market value of the assets on the last business day of the previous quarter. The
         Registrant adjusts the advisory fee for intra-quarter additions and withdrawals.

   C. The Registrant does not determine or recommend the custodian-the Registrant is custodian
         neutral. The Registrant currently maintains relationships with Axos Clearing and Schwab.
         The choice of custodian is the decision of the client in conjunction with the client’s chosen
         referring broker-dealer/ investment adviser. The Registrant has no economic incentive
         relative to the client’s choice of custodian. The Registrant can manage the assets in the same
         manner at any such custodian. Fess will differ depending upon the custodian chosen.
         Currently, custodian charges are 0.15% annually. Higher custodian fees will adversely
         impact account performance. The client should address custodian choice with the referring
         broker-dealer/ investment adviser. The timing and/or frequency with which these custodian
         fees are assessed may differ from Registrant’s fee practices, and the client is advised to refer
         to his or her custodian agreement for specific details. For example, while Registrant’s annual
         fee is paid quarterly in advance, the custodian’s annual asset-based transaction fees may be
         paid quarterly in arrears.

         In addition to Registrant’s investment management fee and the custodian’s fees, clients will
         also incur, relative to all mutual fund and exchange traded fund purchases, charges imposed
         at the fund level (e.g., management fees and other fund expenses).

         Additional information concerning mutual fund fees and custodial expenses is located in

Item 7           Types of Clients

         The Registrant’s clients shall generally include individuals, business entities, investment
         companies, pension and profit sharing plans, trusts, estates, and charitable organizations.
         The Registrant generally requires an annual minimum asset level of $20,000 for investment

         advisory services. However, as discussed in Item 5 – Fees and Compensation, Registrant,
         in its sole discretion, may waive or reduce its minimum asset level based upon certain
         criteria (i.e., anticipated future additional assets, dollar amount of assets to be managed,
         related accounts, etc.). Also, minimum asset requirements may vary by strategy.
         ANY QUESTIONS: Registrant’s Chief Compliance Officer, David Jajewski, remains
         available to address any questions that a client may have regarding its advisory fee
         schedule.