Summary of Types of Stock Accounts

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Summary of Types of Stock Accounts

As an investor, you need to decide what type of investing you want to do. This is best determined by establishing your goals, timelines, and risk tolerance. Only then can you select the type of account through which you will invest. Cash accounts, in which you literally pay cash for your investment transactions, are ideal for most individuals. Margin accounts allow you to borrow a portion of a transaction’s cost. Wrap accounts offer cost and fee alternatives, and option accounts offer a more volatile style of trading. Regardless of the type of investing you select, the right account is the one that best meets your financial objectives.

Practical Ideas I Can Start with Today

  • Research stocks that fit my investment goals and risk tolerance. Use this calculator.
  • Identify growth stocks or income stocks that are attractive buys, based on their advantages and disadvantages.
  • Set up a margin account, wrap account, or option account to begin trading with a broker.

What you have learned

  1. Brokerage Cash Accounts
  2. Brokerage Margin Accounts
  3. Brokerage Wrap Accounts
  4. Brokerage Option Accounts
  5. Brokerage Specialty Accounts

Find out what you have learned