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.