What are brokerage accounts?

Brokerage accounts allows investors to buy and sell a variety of investments like stocks, bonds, and mutual funds. Watch as we explain the multiple types of brokerage accounts and brokerage firms which give investors the opportunity to cherry-pick the model that best suits their financial needs.

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 does a full service brokerage account work?

Full-service brokerage accounts charge either commissions on trades or advisor fees. A commission account generates a fee anytime an investment is bought or sold, whether the recommendation came from the client or the advisor, and whether the trade is profitable or not.

What is a discount brokerage?

A discount brokerage is an online brokerage. The online broker's automated network is the middleman, handling buy and sell orders that are input directly by the investor. The introduction of the first discount brokerage is often attributed to Charles Schwab Corp., which launched its first website in 1995. Competitors soon appeared.