custodial fee

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.

custodial fee

The fee charged by a financial institution that holds securities in safekeeping for an investor.
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Most banks and brokerage firms permit customers to pay the custodial fee separately rather than have it deducted from the account.
Many funds also charge a yearly custodial fee to cover the administrative costs of handling an individual retirement account.
Also, customers eligible for the Bank of America relationship pricing discount will have their semi-annual BAI account maintenance fee and, if applicable, annual BAI IRA custodial fee waived.
The technological integration between BenefitStreet and Reliance will help plans enjoy extremely competitive recordkeeping and custodial fee rates.
ESP's ability to combine multiple trading venues in same name trades at different destinations into a consolidated counterparty ticket will result in custodial fee savings for asset managers," said Manny Santayana, Managing Director and Head of Credit Suisse's AES Sales Group.
A $10 custodial fee on IRA (including SEP-IRA) accounts with a balance below $5,000.
STC had a compensation arrangement with the hedge funds that included a custodial fee as large as 1% (STC charged most of its TPA clients a custodial fee of just .
9 /PRNewswire/ -- The Vanguard Group of Investment Companies will no longer assess an annual $10 custodial fee for IRA portfolio accounts with assets of $5,000 or more, effective Jan.
Callahan calculates the average management and custodial fee savings for Meridian private accounts will be about 20%, or $650 to $700 on a $100,000 investment in Meridian's Sector Allocation or Frontier Allocation portfolios.
PSI) is extending its Lifetime No Annual Custodial Fee IRA Program from the original June 30 deadline to September 30, 1996.