Brokerage Account for 2024

We found 11 online brokers that are appropriate for Trading Brokerage Account Investment Platforms.

Brokerage Account Guide

Analysis by Andrew Blumer, Updated Last updated - April 22, 2024

Brokerage Account

An investment account opened with a licensed brokerage house to buy and sell stocks, bonds, ETFs, mutual funds and other financial products is called a brokerage account. The brokerage house executes orders on behalf of the clients who need to claim any capital gain from the trading as a taxable income.

Investing money through a brokerage account is one of the most popular ways to save funds to meet future liabilities such as children's education, marriage purposes and buying a house.

Brokerage Account Key Highlights

Brokerage Account Explained

There are various brokerage accounts one can open with a brokerage firm. Investors can choose the model that suits them best. Good investment advice can be expected from full-service brokers who charge comparatively higher fees for the additional service offered.

Online brokers offer no advice service, but they provide a secure trading interface or platform for traders to execute orders. The fees charged by them are relatively low.

Similarly, a broker account may also differ regarding order execution speed, the scope of tradable assets, analytical tools and margins offered.

Full-Service Brokerage Account

A full-service brokerage account is perfect for investors looking for expertise trading guidance. A few examples to name here are UBS, Wells Fargo Advisors, Morgan Stanley, and Merrill. The commission or fee charged is slightly more, but may be a flat annual fee between 0.5 and 1.5 per cent on the account balance.

Discount Brokerage Account

A discount brokerage account is best for investors who are in favour of a do-it-yourself approach. The fee or commission is comparatively lower than the full-service brokerage account. Some discount brokers include eToro, XTB and AvaTrade.

Regional Financial Advisor Brokerage Account

Some prefer to have personal interaction. Companies like Edward Jones, Jefferies Group LLC and Raymond James are a couple of popular names. They act like financial advisors as well as broker-dealers.

Downward Online Brokerage Account

An online brokerage account is a new concept. It features a mobile-only platform and is usually commission-free. It requires no minimum account.

Options With a Brokerage Account

Investors can gain access to stocks, bonds, mutual funds, ETF's and other types of investment with a brokerage account. It is one of the first steps to building an investment portfolio. The following are some options with a brokerage account:

How To Use Brokerage Account

Many open an account to start saving for future goals like retirement, college tuition, marriage and buying a house. The flexibility of a brokerage account is that money can be withdrawn at any time according to the requirement. So, a brokerage account helps in: