What Is a Brokerage Account?
A brokerage account is an account with a licensed broker-dealer that allows the holder to buy and sell investments such as stocks, bonds, ETFs, and mutual funds. A standard taxable brokerage account has no contribution limits or withdrawal restrictions, but investment income and realized gains are generally taxable each year.
Taxable vs. Retirement Accounts
Retirement accounts such as IRAs are also held at brokerages but have tax advantages, contribution limits, and withdrawal rules.
Account Protection
In the United States, SIPC coverage protects customers if a member brokerage fails, but it does not protect against investment losses.
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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.