Investment Glossary

Brokerage Account - A financial institution that enables you to buy & sell stocks, mutual funds, bonds, and other investments. Your account is managed by a professional broker, who handles all of your transactions as you direct.

Opening a brokerage account usually takes a minimum deposit from anywhere from $100 up to $10,000, depending on the brokerage firm, although many new online brokerage accounts will allow you to open an account with less.

You direct your broker on which investments to buy & sell and pay them a commission on each transaction. Again, however, many new online brokerages may charge only a flat fee per transaction and/or an annual maintenance fee.

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