What is a brokerage account?

What’s a brokerage account? A brokerage account is the type of account used to buy and sell securities like stocks, bonds and mutual funds. You can transfer money into and out of a brokerage account much like a bank account, but unlike banks, brokerage accounts give you access to the stock market and other investments.

How do online brokerages work?

Many online brokerages will also ask about your investing experience and goals. Once your account is set up, you can fund it directly from your bank account and begin investing in any number of investment vehicles, including stocks, bonds, ETFs and mutual funds.

What are the best online brokerage accounts for beginners?

The best brokerage accounts for beginners tend to have zero account minimums, excellent customer support and an easy-to-use platform. Of the brokers NerdWallet reviews, TDAmeritrade, InteractiveBrokers, Fidelity and Charles Schwab received the highest marks in our list of the Best Online Brokers for Beginners.

Do I need a lot of money to open a brokerage account?

You generally do not need a lot of money to do so. In fact, many brokerage firms allow you to open an account with no up-front deposit. However, you will need to fund the account before you buy investments. You can do that by moving money from your checking or savings account, or from another brokerage account.