What is a brokerage account?

A brokerage account is a financial account that holds securities like stocks, ETFs, bonds and other assets on behalf of an investor. A brokerage account is opened with an investment firm or brokerage. Not all brokerage accounts are created equal, and they’ll often have different fees depending on their range of services.

How do online brokerages work?

Some online brokerages are basically just trading platforms where you can sign up for an account, and have added bonuses like commission-free trading and no account minimums. The first thing you'll have to do is decide whether you want to go with a financial planner, a traditional brokerage company, or an online brokerage.

How do I set up a brokerage account?

Setting up a brokerage account is pretty simple. First, you’ll need to choose a brokerage where you want to open the account. As we mentioned before, keep in mind fees, perks, and your own investment style while choosing the right brokerage.

What happens if my brokerage account goes under?

This means if your brokerage account goes under, you won't automatically lose your money. But you will lose your money if your investments do poorly, or you sell off assets when their value is down. Some people have a higher risk tolerance than others. And some investments are known to be volatile.