What is a brokerage account?

A brokerage account is an investment account used to trade assets such as stocks, bonds, mutual funds and ETFs. There are two brokerage account options that meet the needs of most investors: online brokers and robo-advisors. Setting up a brokerage account is simple. You can typically complete an application online in under 15 minutes.

What is the difference between a managed brokerage account and online brokerage?

A full-service managed brokerage account usually comes with help from a financial advisor or a broker. These accounts are usually more expensive since these brokers will charge a fee or commission for making trades or purchases on behalf of their investors. Online brokerage accounts are made for the do-it-yourself investor.

Can you have more than one brokerage account?

You can have more than one brokerage account, and different types of brokerage accounts serve different purposes. A standard brokerage account is the most common. It is a taxable account that gives investors access to a variety of investments. Investors can trade, deposit, withdraw or shut down their accounts at any time.

Is a brokerage account better than a retirement account?

Brokerage accounts are good for saving for short-term goals, while tax-advantaged accounts are better for retirement savings. A brokerage account is a financial account investors and traders use to buy and sell securities like stocks, bonds, mutual funds and ETFs. Unlike retirement accounts, brokerage accounts come with very few restrictions.