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What is a Brokerage Account?
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For every buy and sell transaction, the fee that an investor must pay is called
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Hi, My name is Jon and I am a Independent investor from Kansas City and I'm hear today to talk to you about what is a brokerage account on About.com. In order to first start investing your money you first need to open a brokerage account.  First an investor chooses a brokerage firm, such as Charles Schwab, E-Trade ot TD Ameritrade. He or she then deposits their funds with the firm and then is able to place investment orders through the brokerage which carries out the transaction on the investors behalf.  Once the transaction is complete the investor will own the number of shares of that stock or that mutual fund in their brokerage account until they are ready to sell it.   One the investor is ready to sell their shares they place an order with the brokerage firm to sell and then the transaction to sell will be completed. For every buy and sell transaction the investor will pay a fee to the brokerage firm called a commission. Which can vary in price depending on what kind of brokerage firm you have. Thanks for watching and for more information on stocks and investing, be sure to check us out on the web at money.about.com.
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