A brokerage account is an arrangement where an investor deposits money with a licensed brokerage firm, who places trades on behalf of the customer. Although the brokerage executes the orders, the assets belong to the investors, who typically must claim as taxable income any capital gains incurred from the account.There are multiple types of brokerage accounts and brokerage firms, giving investors the opportunity to cherry pick the model that best suits their financial needs. Some full-service brokers provide extensive investment advice and charge exorbitantly high fees for such guidance.On the other end of the compensation spectrum, most online brokers simply provide a secure interface through which investors can place trade orders and charge relatively low fees for this service. Brokerage accounts may also differ in terms of order execution speed, analytical tools, the scope of tradable assets, and the extent to which investors can trade on margin.Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

Ver todos los episodios