But firms will offer the best value to people who keep at least $100,000 in a fee-based account.

Less than 10 percent of Merrill clients' assets are in fee-based accounts.

All the investors were placed in fee-based accounts, with annual charges of at least 1 percent going to the brokerage firm.

Nonetheless, there is no denying the appeal of fee-based accounts on principle.

Many investors who are moving toward fee-based accounts were previously do-it-yourselfers when it came to investing.

Still, a fee-based account does not eliminate the possibility of a conflict between the interests of a broker and a customer.

After the technology bubble burst in 2000, and day trading screeched to a halt, fee-based accounts became more popular.

In 2005, American investors had more than $268 billion in fee-based accounts.

For customers who are active in the market, fee-based accounts can make more sense.

For those who do not trade a lot, fee-based accounts can lead to higher commission charges.