What are wrap accounts?

Wrap accounts are designed to offer investors a bundled package of services under a single fee structure. These investment accounts charge a single annual fee that covers various services, such as portfolio management, trading costs, and financial planning, providing clients with comprehensive investment management without the need to pay multiple fees for individual transactions or services. This fee structure simplifies the cost of investing and can be more transparent for investors who prefer to understand their total investment costs upfront.

The idea behind wrap accounts is to provide a holistic approach to investment management, catering to clients' diverse investment needs while eliminating concerns about unexpected costs associated with trades or account management. This structure can also encourage the advisor to take a long-term view in managing the portfolio since their compensation isn’t directly tied to the number of transactions executed.