What is a brokerage account?

A brokerage account is an investment account that allows you to buy investments like stocks, bonds, mutual funds, and exchange-traded funds (ETFs). Many people have other investment accounts, such as a 401 (k) through an employer, an IRA (traditional or Roth), or a health savings account (HSA).

What is an investment account?

An investment account, sometimes called a brokerage account or a securities account, is what investors use to buy and hold securities, such as stocks, bonds and index funds. And while they can also hold cash like a bank account, there are major differences. But there are also several types of investment accounts, each with their own purpose.

What is an individual brokerage account?

Individual (or Joint) Brokerage Accounts let you purchase stocks, bonds, exchange-traded funds (ETFs), mutual funds, and other financial assets. A joint account is commonly used by married couples to consolidate their investments. Brokerage accounts lack tax advantages but are available to virtually anyone to invest any amount.