A brokerage account is a taxable investment account used for buying and selling securities. Retirement accounts, like IRAs and 401(k)s, are a separate type of account specifically designed for retirement savings. Brokerage accounts offer much greater flexibility compared to retirement accounts. You may deposit as much money as you want in a brokerage account, and you can invest in any securities, such as stocks, bonds, mutual funds, ETFs, and more.
Opening and investing in a brokerage account can help you save for long-term goals like buying a house and retirement — and doing so is easier than ever with the variety of online brokerages available. The best brokerage accounts in our analysis included Fidelity, Charles Schwab, Interactive Brokers, E-Trade, Merrill Edge, Robinhood and more. These platforms offer a range of features, from low fees and user-friendly interfaces to advanced trading tools and research resources.
When choosing a brokerage account, it's important to consider factors such as fees, investment options, customer service, and user experience. Some brokerages may offer bonuses for new customers, like cash rewards or commission-free trades. For example, Charles Schwab currently offers a bonus of $100 to $1,000 for personally referred friends. J.P. Morgan Self-Directed also has promotions for new account holders.