Brokerage Account/Investment Account

A brokerage account is an account with a stockbroker or investment company. A brokerage account is used for trading stocks, bonds, options or other investment securities.

A traditional broker, or “old school broker” is a full service broker with a physical office. Generally, an investor will work directly with a personal broker who can offer advice about appropriate investment opportunities to invest in your brokerage account, and recommend investment diversification strategies based on your investment style.

Discount broker, although offering the same array of products and services as a traditional broker, provides less personal attention. Access to discount broker are frequently online via the Internet or by toll-free telephone numbers. The investor is on his own, and is expected to identify appropriate investment opportunities. As a result, fees charged for these brokerage services are often much lower than at a full service broker.

Choosing a broker as well as deciding on the type of brokerage account to open requires not only careful review of all the information in the brokerage account agreement but a careful comparison among brokers of commissions and brokerage account features. Below is a comparison of the top ten online brokers.