how to open a brokerage account
opening a brokerage account is a simple process that takes just a few minutes once you ve selected a firm and the type of account you want to open taxable or tax advantaged get the following personal information ready the setup process will include questions about your financial needs investment goals investing style and risk tolerance you ll need to fund your account once you ve created your profile and your account is open to open an account you must first choose a brokerage that suits your needs if you re still unsure step back and consider for instance whether you re an engaged investor who follows the markets daily or someone who wants to leave that to others do you take a conservative income focused or aggressive growth focused approach to investing are you investing for short term goals or retirement how easy is it to use a broker s website understanding such topics can help you choose a firm and decide whether to open a taxable brokerage account or a tax advantaged retirement account standard brokerage account vs ira brokerage accountinvestors can open a standard brokerage account and an individual retirement account ira in fact you can open an ira even if you already have a workplace retirement plan such as a 401 k it s a good idea because it gives you an additional tax advantaged opportunity to save for retirement knowing the difference between a standard brokerage account and an ira account opened at a brokerage can help you decide whether you should open one or the other or both investments are taxedyou can deposit and withdraw funds as often as you like and with no limit on depositsdeposits are not tax deductibleyou can invest in any securities offered by your brokerage used for all kinds of purposes e g to build wealth over the long term and reach short term financial goals such as buying a home 