What is a brokerage account?

You know about a checking account or a savings account. These are accounts that allow us to store money somewhere other than under our mattresses... We get a checking or savings account through our bank.

A brokerage account is also a place to store money, but one which allows us to have access to buying investments, like stocks, bonds, mutual funds and ETFs.

Some of the largest brokerage companies are: Vanguard, Schwab, Fidelity. You have likely also heard of Robin Hood and eTrade. WeBull is a newer one that the younger generation likes as well. These are all brokerage companies, and they all allow a person to start investing in the stock market once an account is opened with them.

This is likely a good time to let you know: MultiGenerational.Black has changed its business model. Originally, we were going to invest money for you, but in these past almost two and a half years, we have seen that instead of letting you be passive in the process, it was more valuable for us to 'teach you how to fish,' so to speak, by giving you the investing education that would allow you to make good investing decisions yourself.

Thus, the MGB Investing Starter Kit workshop, taught annually during Black History Month, gives you twelve simple and practical steps to take, over the course of six months to a year, that get you in great shape to begin investing. You can sign up for the next workshop by clicking HERE.

We have also introduced the MGB Self-paced workshop, which you can purchase HERE.

If you need more support than either of those options, you can join the Six Month MGB Investing Starter Kit workshop, which you can learn more about HERE, and register for HERE. Live classes on zoom twice a month.

But back to the concept of a brokerage account-- you're only able to trade stocks by opening one. You'll need a Social Security number, possibly some money to fund it with, and you need to be over 18. And of course, you need to have an idea of what to invest in! And that's what the workshop is for...

Optional exercise:

Find out if your bank offers brokerage accounts, and if they do, schedule an informational meeting with your bank, just as a fact-finding mission. Ask them if there are minimum amounts to invest, or if there are fees. You should know that most brokerage accounts should have low or no fees for the basic investing we are talking about here.

If your bank doesn't offer brokerage accounts, or even if it does, pick one of the others that I mentioned above, and take a look at their websites. See if one appeals to you, and schedule an informational session, if they offer it. Ask them what they need for you to open an account.

Note: once you do start investing, and hopefully your account is making money, you may need to file tax forms on any income it generates. Consult with an accountant if you are in this position, of course.

Do you have a brokerage account? Let us know in the comments! And as always, thanks for reading this!

Image: WOC In Tech from Nappy.co

Quick links:

What is The MGB Investing Starter Kit? is HERE

Step 1 in the MGB Investing Starter Kit process is HERE

Step 2 is HERE --Keep a 'Digit Tally', like You Need A Budget or RocketMoney or our free tracker template HERE

Step 3 is HERE

What is Investing? is HERE

To buy our self-paced investing course for $49, sign up by clicking HERE.

For the 90 min zoom class during Black History Month for $98, click HERE.

To register for our 6 month course, for $795, click HERE.

Disclosures

Equity through equities.