All Wrapped Up: Could A Fee-Based
Investment Program Make Sense For You?

Because wrap accounts typically offer a variety of investment services for a flat fee, or a percentage fee, they can usually produce significant cost savings for certain types of investors. And, depending on your particular variables, they may be just what you are looking for.

BY SHERI WALLACE | Are you tired of tracking your portfolio? Or maybe you just received your most recent commission statement for the trades you made last month - and you are wondering whether you can get good brokerage service at a lower cost. If so, a wrap account may be just right for you.

Wrap accounts have become popular but controversial since they were introduced in 1975 by E.F. Hutton after the securities brokerage industry was deregulated and firms were permitted to set their own commission fees. Also known as fee-based investment programs, wrap accounts are offered today by many brokerage firms.

Wrap accounts have become popular but controversial since they were introduced in 1975 by E.F. Hutton after the securities brokerage industry was deregulated and firms were permitted to set their own commission fees. Also known as fee-based investment programs, wrap accounts are offered today by many brokerage firms.