To appeal to a broader market, Lockwood Financial has introduced individually managed accounts with a 25,000 dollar minimum investment.

"We're offering this so the adviser has something for the smaller account," says Len Reinhart, CEO of Lockwood Financial Group in Malvern, Pa. It is suitable for an IRA or a child's account, he says.

The new offering is called Prism. Managers will use stocks, bonds and exchange-traded funds to build portfolios.

Reinhart says using individual managers in place of mutual funds in smaller accounts is the start of a trend.

"You'll notice Salomon Smith Barney dropped its minimum on fee accounts to 50,000 dollars," Reinhart says. Both Lockwood and SSB introduced their lower thresholds in mid-May.