What a brokerage account is
A brokerage account is an account with a licensed firm that lets you buy and sell securities such as stocks, ETFs, bonds and mutual funds. Your money and holdings stay at the broker; the broker executes your orders on exchanges.
Pick the account type
- Taxable (individual or joint). Flexible, no special tax treatment, no withdrawal limits.
- Retirement ([IRA](/learn/what-is-an-ira)). Tax-advantaged, with rules on contributions and withdrawals.
- Custodial. An adult manages the account for a child.
What to compare
- Costs. Many brokers charge no commission on US stocks and ETFs. Look at fund fees, margin rates, transfer-out fees and any account fees.
- Investment choices. Do they offer the funds, bonds and ETFs you want? Fractional shares?
- Account protection. In the US, look for SIPC membership, which protects against the broker failing but not against market losses.
- Tools and support. An app you can actually use, clear statements and a human to call.
What you will need to open one
Expect to provide your legal name, address, date of birth, Social Security number or tax ID, and employment information. You will then link a bank account to fund it.
Your first order
A market order buys or sells at the best available price right now. A limit order sets the most you will pay (or the least you will accept), and only fills if the market reaches that price. Beginners often use limit orders for less-traded securities. Read about market and limit orders before placing one.
Start small and stay simple
Fund the account, then consider putting a fixed amount in on a schedule, as in dollar-cost averaging. Investz is a research site and does not recommend or endorse any broker.
Quick answers
How much money do I need?
Many brokers have no minimum, and fractional shares let you start with a few dollars. Make sure you have an emergency fund first.