Investing term

What is Brokerage account?

The account you open at a broker to hold your investments.

A brokerage account is the account you open at a broker to hold cash and investments and to place trades. Unlike a retirement-specific account, a standard brokerage account is flexible — you can deposit and withdraw freely — but it carries no special tax treatment, so gains and income are typically taxable in the year they occur.

For example

You wire $2,000 into a brokerage account, and from there you can buy a fund, hold it, sell it, and withdraw the proceeds whenever you like.

Brokerage account is taught hands-on in Stage 7Brokers, Accounts & Getting Started.

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