What Is a Brokerage Account?

A brokerage account is an account with a licensed firm (a broker) that lets you buy and hold investments such as stocks, ETFs, and funds. You deposit money, place orders through the broker, and it holds the investments for you and keeps a record of what you own. This is educational, not financial or investment advice.

What it is for

A bank account holds cash. A brokerage account holds investments — and the cash waiting to be invested. It is the account you need before you can buy your first share or ETF.

Common types

• Taxable (standard) brokerage account — flexible; you can deposit, invest, and withdraw any time, and gains may be taxable.
• Tax-advantaged / retirement accounts — accounts with tax benefits and rules about when you can withdraw. The specific types and rules depend entirely on your country, so check what applies to you.

What to look for when comparing brokers

Brokerage account vs bank account

A bank account is for spending and saving cash; a brokerage account is for investing it. Money in a brokerage account is typically not "spending money" — it is invested in assets whose value goes up and down.

Is my money safe?

Brokers are regulated, and many countries have investor-protection schemes that cover certain losses if a broker fails (this is separate from investment losses, which are never covered). The details vary by country and provider, so check the protections that apply where you are.

Takeaway

A brokerage account is the account that lets you buy and hold investments through a licensed broker. Compare brokers on fees, minimums, and the markets they offer, and remember it holds investments that can rise and fall, not guaranteed savings. Next: how to open one.

Educational only — not financial or investment advice.