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Brokerage Account  

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A brokerage account is a trading account opened with a stock broker. A brokerage account is used to buy and sell securities through the stock broker on a stock exchange.

As per the Securities and Exchange Commission (SEC) it is mandatory to trade in securities through a registered stock broker. Therefore, to trade securities it becomes necessary to open a brokerage account. For transactions executed through the brokerage account a fee is charged which is called as brokerage commission.

Related Terms: Brokerage Firm - Brokerage Commissions - Stock Certificate - Online Stock Broker




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