Try free
Investing

What is a brokerage account?

The meaning

The account you use to actually buy, sell, and hold your investments. Think of it like a bank account, but instead of just cash, it holds your investments like stocks and ETFs. Fidelity, Schwab, and Vanguard are common examples. You keep your investments in your own brokerage account. Firreo just tells you what to buy there.

Example
  1. $500Moved from your bank
  2. BrokerageBuys an index fund
  3. PayoutsLand as cash
Money goes in from your bank, buys investments, and payouts land back as cash.
Walk through the numbers

You open an account at a brokerage firm, move $500 in from your bank, and use it to buy shares of an index fund. The fund shares sit in your account, and any dividends land there as cash.

Why it matters

It is the starting line. You cannot invest without one, and opening one is usually free and takes a few minutes.

Related terms

See all 34 terms · Read the full glossary

For education only and not personalized investment advice. Examples are hypothetical illustrations, not a prediction or a promise of results. All investing involves risk, including the possible loss of principal.