A brokerage account is an arrangement that allows an investor to deposit funds and place investment orders with a licensed brokerage firm.
| Term of the Day | Words to Know | | | | Brokerage Account | 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. | Read More » | Related to "Brokerage Account" | | SPONSORED BY INVESCO | The Complete Guide to ETFs | ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. | Learn More » | | Broker | A broker is an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. | Read More » | | Brokerage Fee | A brokerage fee is a fee charged by a broker to execute transactions or provide specialized services. | Read More » | | Margin Account | A margin account is a brokerage account in which the broker lends the customer cash to purchase assets. When trading on margin, gains and losses are magnified. | Read More » | | | | | CONNECT WITH INVESTOPEDIA | | | | | |
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