In this article, The Ascent answers some of the most frequently asked questions regarding brokerages, such as "What is a brokerage account?" and "How do brokerage accounts work?"
This article also covers and defines the different types of investments one can make with a brokerage account, including
- Common stock
- Preferred stock
- Money market accounts and CDs (certificates of deposit)
- Mutual funds
The Ascent breaks down the costs associated with a brokerage account, including: broker fees, transaction fees, and management fees, and explains the differences between cash vs. margin brokerage accounts, and discount vs. full-service brokers.
In addition to the above, this article explains what you should be looking for in a brokerage account, as well as how to open a brokerage account.
The Ascent also provides a detailed review of some of the most popular brokerages. You may find links to the available reviews below:
- TD Ameritrade
- Merrill Edge
- Trade Station
- Ally Invest
- Charles Schwab
Learn more about The Ascent here.