Brokerage account

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Brokerage Account

Money given to a broker or brokerage for investment purposes. One manages one's brokerage account differently according to the type of brokerage; that is, one may meet with a broker, call on the telephone, or give orders over the Internet. Brokerage accounts are divided into two main categories: advisory accounts and discretionary accounts. Brokers are only allowed to conduct transactions on advisory accounts on the specific orders of the account holder, or under very specific instructions. On the other hand, brokers have a great deal more leeway over discretionary accounts, conducting transactions not prohibited by the account holder in accordance with the holder's investment goals and the prudent man rule.

Brokerage account.

To buy and sell securities through a broker-dealer or other financial services firm, you establish an account, generally known as a brokerage account, with that firm.

In a full-service brokerage firm, a registered representative or account executive handles your buy and sell instructions and often provides investment advice.

If your account is with a discount firm, you are more likely to give your orders to the person who answers the telephone when you call.

And if your account is with an online firm, you give orders and get confirmations electronically.

In all three cases, the firm provides updated information on your investment activity and portfolio value, and handles the required paperwork. And in some cases, your brokerage account may be part of a larger package of financial services known as an asset management account.

References in periodicals archive ?
Key features of Schwab Bank Investor Checking include -- Schwab Bank checking account linked to a Charles Schwab brokerage account -- Single log in online access to the Schwab Bank checking account and Charles Schwab brokerage account -- ATM fee rebates (up to 20 or maximum of $35 per statement period) (1) -- Daily ATM withdrawals up to $2,000 -- The convenience of overdraft protection (2) -- Free online bill payment (3) -- Visa(R) Platinum Check Card -- Real-time cash transfers between brokerage and bank accounts -- Access to online check images
MILWAUKEE -- MILWAUKEE, March 20 /PRNewswire/ -- Strong Financial Corporation launched a new tool today enabling investors to open brokerage accounts completely online.
In fee-based brokerage accounts, customers are charged an annual fee that is usually a percentage of the assets in the account with an annual minimum, rather than a commission for each transaction as in a traditional brokerage account.
bank checking or savings account to a TD Waterhouse webBroker-enabled brokerage account.
Schwab provides a self-directed brokerage account option to some of the industry's most influential retirement plan providers.
For example, with the click of a mouse or a simple phone call, a customer can transfer excess cash from their checking account to their brokerage account, where they have the opportunity to earn money market interest rates.
The board of directors still, however, encourages shareholders to order out all CIC shares held in brokerage accounts.
Ironically, despite the overall shortfall in the marketplace of the full service platforms, most of the firms we talked to assured us that they did indeed offer brokerage accounts for small businesses, even if they were nothing more than accounts designed for individual investors.
The board of directors encourages its shareholders to order out all CIC shares held in brokerage accounts so that CIC's transfer agent may update its records to reflect the shareholders eligible to receive TTI's shares.
The down payment is eliminated by pledging eligible securities to Merrill Lynch which are held as collateral in a special brokerage account.
The average employee who invested in a self-directed brokerage account had $90,500 in the brokerage account by the end of 2005, up from $69,300 in 2004.
As part of the rule, brokerage firms offering fee-based advice are now required to include standard disclosure in brokerage account applications, advertisements and sales materials that reveals, among other things, that an investor's account is a "brokerage and not an advisory account," and that the investor's and broker's "interests may not always be the same.