What is a brokerage account?

A brokerage account serves as a platform for individuals to engage in the buying and selling of various securities, such as stocks, bonds, and mutual funds, through the facilitation of a broker. This type of account provides access to the financial markets, allowing investors to execute trades either online or with the assistance of a financial advisor.

By utilizing a brokerage account, individual investors can diversify their portfolios, manage investments more effectively, and take advantage of market opportunities. The features of a brokerage account include the ability to place different types of orders, access research tools, and utilize margin accounts for leveraging investments.

The other options do not accurately represent what a brokerage account is used for: a savings account does not involve trading securities, an account exclusive to institutional investors would not cater to retail clients, and an account limited to currency trading would not encompass the full scope of securities trading that a brokerage account allows.