brokerage account

An account that an investor sets up with a licensed brokerage for the purpose of buying and selling market securities such as stocks, funds, bonds, options, etc. Where you set up your brokerage account depends on your needs and wants. Among the most important considerations are what types of investments you will make, which financial services you will use and what your investment style is. Different firms are geared toward different investors based on how much experience you have investing, how much money you want to invest and what level of support is needed. There are two main types of brokerage accounts: cash accounts, which is want most individual investors use, and margin accounts, which involves using borrowed money to buy securities.