A brokerage account is a type of financial account that allows individuals to buy and sell various investment products, such as stocks, bonds, and mutual funds. These accounts are typically managed by a licensed professional known as a broker, who facilitates transactions on behalf of the account holder. Brokerage accounts can be opened with different types of firms, including traditional brokerages and online platforms. There are two main types of brokerage accounts: cash accounts and margin accounts. A cash account requires the investor to pay for securities in full at the time of purchase, while a margin account allows for borrowing funds to buy more securities than the investor can afford. Both account types come with different risks and benefits, making it essential for investors to understand their options.