Subaccount charge

Subaccount charges are a type of fee charged by a bank or other financial institution for the management of a subaccount. Subaccounts are essentially accounts within larger accounts. Subaccounts may keep funds separate for ease of accounting or to allow for a variety of investment strategies within a larger portfolio.

Subaccount fees generally cover payment to an investment advisor who makes investment decisions regarding the subaccount. The charge also covers the cost of buying and selling securities and administering these trades. It is akin to the fee paid for a mutual fund’s investment manager—Read more at Investopedia. Kenton, Will. “Subaccount Charge.” 24 June 2018