Definition

Noun: A brokerage account is a specialized financial account held by an investor with a licensed brokerage firm. This account is used to hold cash and securities (such as stocks, bonds, and mutual funds) for the purpose of buying, selling, and investing in financial markets. The brokerage firm acts as the custodian and intermediary for these transactions.

Usage

A brokerage account is the primary tool an individual uses to participate in the stock market and other investment activities. It is distinct from a standard bank account. * You must deposit money into your brokerage account before you can buy stocks. * All her investments are held in a single brokerage account. * He opened a brokerage account to start saving for retirement.

Advanced Usage

• Cash Account: A standard type of brokerage account where you must pay for securities in full at the time of purchase.
• Margin Account: A type of brokerage account that allows an investor to borrow money from the broker to purchase securities, using the existing holdings in the account as collateral.

Variants and Related Words

• Brokerage (noun): The business or service of acting as an agent in buying and selling securities or other assets. (e.g., )
• Broker (noun): A person or firm that arranges transactions between a buyer and a seller. (e.g., )
• Investment Account: A broader term that can include brokerage accounts as well as accounts like IRAs or 401(k)s.

Synonyms

• Securities account
• Trading account
• Investment account (in a general sense)

Related Terms and Phrases

• To open/fund a brokerage account: The process of starting and depositing money into the account.
  • The first step is to open a brokerage account online.
• Brokerage firm / Brokerage house: The company that operates and services the account.
  • She transferred her assets to a new brokerage firm.

Noun

1. a fund that a customer has entrusted to a securities brokerage
   • you can't get a brokerage account unless you have $20,000