| Wrap
Account |
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Account
in which a brokerage manages an investors portfolio in exchange for
a flat quarterly or annual fee. This fee covers all administrative,
commission and management expenses. Sometimes also includes funds
of funds.
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The
advantages of a wrap is that it protects you from over trading, this
is when your broker trades your account excessively to make more commission.
Furthermore because the broker gets a flat annual fee then he/she
only trades when it is advantageous to you.
A traditional wrap typically requires an initial investment of at
least $50,000 - $100,000. |
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Dictionary
