What is a Wrap Fee?
A wrap fee is a “bundled” charge that includes the Navellier management fee and all trading/custodial costs. With a wrap fee, the brokerage firm would charge you a flat fee and allow unlimited trading in your account. Wrap fees are very common at full-service brokerage firms. On the other hand, discount brokerage firms often charge a trading fee every time Navellier buys or sells something in your account. Contrary to popular belief, many wrap fee charges at large brokerage firms are less than the per-trade fees charged by discount brokerage firms – but there are exceptions. If you’d like to discuss your options in more detail, please contact us at (800) 365-8471 or info@navellier.com.
Wrap fees are the schedule of bundled rates that are charged to an investor. Instead of charging a separate fee for each service that is extended to the client, a brokerage or other type of financial service will provide the investor with a blanket charge for all services that are included in the individual investment program. Essentially, a wrap fee keeps the charges simple for both the investor and the service provider. The exact amount of the wrap fee will depend on the range of services included in the structure of the individual service package. Some financial institutions, such as banks, research firms, investment advisory services, and financial management programs, will offer a series of investment programs that a client may choose to engage. A basic program will include a limited number of services, while each succeeding package will include more services and have a slightly higher fee associated with the program. This inclusion of multiple services for one flat fee is often a
