Sometimes referred to simply as an investment account or a taxable investment account, a brokerage account allows you to buy & sell investments, such as stocks, bonds, exchange traded funds (ETFs), mutual funds, & specialty investments. These accounts do not receive any special IRS tax-advantage like in individual retirement accounts (IRAs), 403(b)s, 401(k)s, Roth accounts, or college savings plans. Rather, brokerage accounts are funded with money that has already been taxed & the investment growth realized is also taxable, however only at capital gains tax rates.

There are no restrictions to what account funds can be used for, or when they must be taken. Because of this, brokerage accounts are very customizable, & can be a good fit for a multitude of different types of investors, including but not limited to: investors who want to invest money that would otherwise just be sitting in the bank earning no, or very low interest; investors who want to save for a specific future purchase (like a boat or a house); or investors who want exposure to specific investments to improve their overall investment portfolio.