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Custodial Fees

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Custodial fees
Fees charged by an institution that holds securities in safekeeping for an investor.

Custodial Fee
A fee a brokerage or other financial institution charges for safekeeping services. Safekeeping or custody is a service in which the brokerage or financial institution holds securities on behalf of the client, which reduces the risk of the client losing his/her assets or having them stolen. They are also available to the brokerage to sell at the client's demand. Like a bank, custody provides an investor a place to store assets with little risk. Unlike a bank, custodians are not allowed to use the items in safekeeping for their own ends. Assets in custody are not fungible for the brokerage because they remain in the client's name.


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They will use it only for football and occasional district events, and pay maintenance and custodial fees on those occasions.
The $8,000 in her IRA is invested in a blue-chip fund; she should roll over that money into a Fidelity IRA account to eliminate paying custodial fees.
For actively managed international funds commissions, custodial fees and operating and trading cost differences are even greater than for domestic funds.
 
 
 
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