A brokerage account is an account at a financial firm that lets you buy, sell and hold a wide variety of investments. You benefit from expanded investment opportunities and the flexibility to target short-, intermediate- and long-term goals with individual securities or collective investments.
Questions to ask yourself when considering a brokerage account:
Whatever your financial goals are, a brokerage account can help you. These are just a few examples of how you can try to meet your goals:
If your goal is:
Consider this brokerage solution
Cash management account
FDIC-insured money market sweep account, CD
Target date mutual funds
Stocks, bonds, mutual funds, exchange-traded funds
Dividend-paying stocks and/or mutual funds
These are just a few examples of how a brokerage account can help you meet a variety of goals.
Ask plenty of questions up front to make sure the broker has your interests in mind. Before deciding which brokerage firm to do business with, it is important to know what they charge and what services you can expect in return.
Compare these traits:
Many brokerage firms will help you open your account and narrow down your investment choices. Some firms will even make the buy and sell decisions for you.
Levels of support commonly offered to brokerage clients:
Certain securities may not be suitable for all investors. Securities are subject to investment risk, including loss of the principal amount invested.
Investment (including securities), insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
Speak to a brokerage specialist
Mon - Fri, 8 a.m. - 7 p.m. (ET)