Investment Glossary
Brokerage
Account - A financial institution that enables you to buy &
sell stocks, mutual funds, bonds, and other investments. Your account is
managed by a professional broker, who handles all of your transactions as you
direct.
Opening a brokerage account usually takes a minimum deposit from anywhere
from $100 up to $10,000, depending on the brokerage firm, although many new
online brokerage accounts will allow you to open an account with less.
You direct your broker on which investments to buy & sell and pay them a
commission on each transaction. Again, however, many new online brokerages may
charge only a flat fee per transaction and/or an annual maintenance fee.
