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.

What are the differences between a brokerage account and a 401(k)?

Annual contributions to retirement accounts are capped, there are strict rules on when you can withdraw funds and some retirement accounts may offer a limited choice of investable assets and securities. The latter is especially true in 401 (k) accounts. Brokerage accounts offer much greater flexibility.

What are brokerage fees?

Brokerage fees are charges that come from full-service brokers or discount or online brokerages for their financial activities to grow and maintain your account. Regardless if you're an active or passive investor, you should be aware of broker account expenses. Here is your guide to help you take control of fee management: Types of brokerage fees.

What is a broker and how does it work?

The broker acts as a lender, and the borrowed funds allow for larger trades and more advanced trades, such as short-selling a stock. The investor pays interest on the loaned amount of money. The brokerage may demand an immediate deposit of funds from an investor if the value of their account drops below a specified level due to market behavior.