Brokerage Account

Brokerage Account Meaning:
In investment terminology, the term brokerage account refers to a type of financial account that contains funds and/or securities that is deposited with a broker or other financial institution by a customer. A broker accepting such a deposit will typically charge brokerage fees or commissions on transactions made on the brokerage accounts.

For example, a brokerage account might be used by a person or corporation to trade or invest in equities. They can usually open this account at a stock brokerage firm to place orders for equities that will be executed by the broker for the investor in the relevant stock market at a price determined by prevailing market conditions. Either the account must have enough funds to cover the transaction, or it must be sufficiently funded by the settlement date. The broker generally charges commissions or fees on executed transactions and provides a secure and convenient place for the account holder to store their equities and/or other tradable investment assets.