How Do the Fees Associated with Segregated Accounts Typically Compare to Those for Omnibus Accounts?
Segregated accounts are generally more expensive for the client than omnibus accounts. The higher cost is due to the increased operational and administrative burden on the broker to maintain separate records, perform distinct reconciliations, and comply with stricter regulatory requirements for each individual client account.
Omnibus accounts are cheaper because the broker benefits from the efficiency of pooling and bulk processing.
