ANSWERS: 1
  • Brokerage accounts offer investors options for investing their money that can provide higher returns than a bank savings account. However, brokerage accounts involve greater risk and can result in losing money.

    Features

    Brokerage accounts allow you to invest in stocks, bonds, mutual funds and other investment securities.

    Fees

    Brokerage firms charge fees and commissions for various services, including investment advice and executing a trade. These fees vary widely with different firms.

    Types

    Full-service accounts provide detailed investment advice and charge more for their services. Discount brokers allow you to research and purchase investments online and charge lower fees. Professional advice is usually available for an additional fee.

    Opening an Account

    You must be at least 18 to open a brokerage account. Sometimes a minimum balance is required but not always.

    Considerations

    You will have to pay taxes on any interest, dividends or capital gains earned in the brokerage account.

    Services

    The services offered by brokerage firms vary, as does the the range of investment assets, the speed with which trades are made, the analysis tools used and the option to borrow money for investing.

    Source:

    Investopedia

    Resource:

    U.S. Securities and Exchange Commission: Advice for Investors

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