Wrap Fee Accounts
An account in which an investment adviser manages an investor's portfolio for a flat quarterly or annual fee. This fee covers all administrative, commission, and management expenses. Sometimes this also includes funds of funds.
An advantage of a wrap is that it protects you from overtrading which occurs if your broker trades your account excessively to make more commission. Furthermore, because the investment adviser gets a flat annual fee, then he or she has no incentive to trade excessively. A traditional wrap often requires an initial investment of at least $50,000 to $100,000.