A "wrap account" is a securities account where the money manager or brokerage firm manages the portfolio and charges an annual or quarterly fee to cover all administrative, commission and management expenses. No separate commission expenses are charged for securities trading in the account. The wrap fee varies, but usually ranges from 1% to 3% of the value of the assets in the wrap account. Wrap accounts usually require a minimum initial investment of anywhere from $50,000 to $10 million.