In stock-market trading, what is a brokerage account used to hold?

In stock-market trading, a brokerage account is used to hold investments and cash.

A brokerage firm maintains the account and provides a way for the customer to buy and sell securities such as stocks, bonds, mutual funds, and exchange-traded funds. The account may also hold uninvested cash awaiting a future purchase or withdrawal.

A cash brokerage account requires the investor to pay for purchases with available funds. A margin account can allow borrowing against eligible securities, but borrowing introduces interest costs and the possibility of losses greater than the investor’s initial cash contribution. Account terms and permissions vary by jurisdiction and provider.

A brokerage account is not the same as a bank account, although some firms offer cash features. It is also different from a retirement account, which is defined by special tax rules. Investors should check ownership, fees, protections, and withdrawal rules before opening one.