What Is a Wrap Fee Account?
A wrap fee account is an financial account that has a broker invest money for an individual, and based on the performance of the recommendation for a specific period, the broker will charge a prearranged fee. Invest in a wrap fee account to earn interest with tips from a registered financial consultant in this free video on finance and investment.
Video Transcript What Is a Wrap Fee Account? This is financial advisor, Patrick Munro, discussing what is a wrap fee account? A wrap free account basically is where a broker will invest money for an individual, and based on the performance of that broker’s recommendations for a period as short as a year, that broker will charge a prearranged fee. Usually it’s seventy five basis points as high as two percentage points to manage the money. The money is paid on the overall value of the account with a minimum involved, which is the basic amount of the account going in, in which case there would be a lower wrap fee or a higher fee based on the recommendations of the broker. And of course the wrap fee also has bonuses if that individual outshines his original predictions. Many progressive brokers enjoy an excellent income based on their recommendations and their wrap fees are constantly going up. However, in a stock market downturn, many individual’s wrap fees are very basic in nature. So th
