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How to open a brokerage account

Mediafeed Logo By Katia Savchuk of Mediafeed | Slide 1 of 7: If you’re new to investing, you’re not alone. Only half of Americans actually invest in the stock market. But getting started is important. Investing could help you grow your money over time, which is key to building a nest egg, saving for long-term financial goals and building wealth.One of the most common ways that people invest is through a brokerage account. The name can sound intimidating, but when you break it down. it doesn’t have to be. A brokerage account is an investment account that you open with a brokerage firm.A brokerage firm acts as a middleman to connect buyers and sellers. After you put funds into the account, you can invest them in a variety of assets, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), money markets and more.There’s no guarantee how your investments will perform, but investing in stocks has historically yielded a 7% return in the long term, after accounting for inflation.There’s no limit on how much you can deposit into a brokerage account (the average minimum deposit is usually between $500 and $2,500) and typically no restrictions on when you can take money out. However, you may owe various taxes related to earnings in your account, such as capital gains and dividends.Even though investing can be a smart decision, it’s worth thinking carefully about whether a brokerage account is right for you and what type you would want to open. You may be wondering hot to open a brokerage account. Here’s a step-by-step breakdown of the process. Related:  What is a brokerage account?

Investing in Stocks

If you’re new to investing, you’re not alone. Only half of Americans actually invest in the stock market. But getting started is important. Investing could help you grow your money over time, which is key to building a nest egg, saving for long-term financial goals and building wealth.

One of the most common ways that people invest is through a brokerage account. The name can sound intimidating, but when you break it down. it doesn’t have to be. A brokerage account is an investment account that you open with a brokerage firm.

A brokerage firm acts as a middleman to connect buyers and sellers. After you put funds into the account, you can invest them in a variety of assets, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), money markets and more.

There’s no guarantee how your investments will perform, but investing in stocks has historically yielded a 7% return in the long term, after accounting for inflation.

There’s no limit on how much you can deposit into a brokerage account (the average minimum deposit is usually between $500 and $2,500) and typically no restrictions on when you can take money out. However, you may owe various taxes related to earnings in your account, such as capital gains and dividends.

Even though investing can be a smart decision, it’s worth thinking carefully about whether a brokerage account is right for you and what type you would want to open. You may be wondering hot to open a brokerage account. Here’s a step-by-step breakdown of the process.

Related:  What is a brokerage account?

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