What Is Brokerage Account? Meaning & Example
Definition
A brokerage account is an account with a licensed firm that lets you buy and sell investments such as stocks, bonds and funds. Taxable brokerage accounts have no special tax benefits.
Related terms
A tax-advantaged account offers tax benefits such as deductions, tax-deferred growth or tax-free withdrawals. Rules and limits vary by account type and country.
Capital GainsA capital gain is the profit from selling an asset for more than you paid. Many tax systems tax capital gains, often at different rates depending on how long you held the asset.
MarginMargin is money borrowed from a broker to buy investments, or the collateral required to hold a leveraged position. Trading on margin increases risk and involves interest costs.
What is Brokerage Account?
A brokerage account is an account with a licensed firm that lets you buy and sell investments such as stocks, bonds and funds. Taxable brokerage accounts have no special tax benefits.
Can you give an example of Brokerage Account?
You might open a brokerage account to invest money beyond what you contribute to retirement accounts.