Brokerage account - Financial definition
Concise definition of the term brokerage account
A brokerage account is a financial account that allows an individual to buy and sell securities such as stocks, bonds, and mutual funds.
Comprehensive definition of the term brokerage account
Beyond serving as a platform for trading securities, brokerage accounts often provide access to research tools, investment advice, and margin lending services. Investors can choose from various types of accounts, including individual, joint, retirement, and custodial accounts, each tailored to specific needs and tax considerations.
These accounts may be managed directly by the investor or through a financial advisor, offering flexibility and control over investment decisions. Additionally, brokerage accounts facilitate the execution of trades on various exchanges, providing liquidity and enabling investors to participate in the global financial markets efficiently.