When you open a new account with a conventional financial institution such as a bank, credit union or online brokerage company, you have open a brokerage account. However, a brokerage account differs from a savings account in many ways. One of the biggest differences between a brokerage account and a savings account are minimum balances. A brokerage account requires that you maintain a minimum balance. In comparison, traditional savings account does not require a minimum balance. Some banks and credit unions have no minimum balance requirement, while other financial institutions have very high minimum balances.
Another big difference between brokerage accounts and savings accounts is the types of transactions and minimum balance requirements associated with them. For example, some brokerage firms offer restricted sales opportunities or securities investments that are only available to account holders who have a particular type of account. The majority of brokerage firms offer a … Read the rest