Opening a Brokerage Account with Matisse
Brokerage accounts can be used to buy and sell a variety of investments, such as stocks, bonds, mutual funds, and ETFs. A brokerage account is an excellent option for investors with goals of all kinds, whether you're saving money for the future or saving up for a big purchase. Unlike other investment accounts, you can use your funds whenever and however you want with a brokerage account.
Learn more about the benefits of opening a brokerage account with us and compare it to the other types of investment accounts we can manage.
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What You Can Do With a Brokerage Account
- Buy and sell stocks, mutual funds, ETFs, and other securities
- Invest for long-term growth
- Save money for your retirement
- Save money for shorter-term goals like college tuition or a down payment
How a Brokerage Account is Different From Other Accounts
A brokerage account is a great option if you want to start investing in the stock market, and it comes with many advantages. Get an overview of what a brokerage account entails, and how it compares to other account types.
Ways to Use Your Brokerage Account
Many investors open a brokerage account to start saving for retirement. However, the flexibility of this type of account means you can also withdraw at any time and use the funds for shorter-term goals, such as a new house, a wedding, or a big remodeling project.
What’s more, when you open a brokerage account, you get to decide how to manage your investments. You can choose to handle your investment on your own or take advantage of working with an advisor at Matisse Capital.
Types of Brokerage Accounts
A brokerage account is a great way to take advantage of the money you've set aside but haven't found the best way to manage yet. When opening an account, it's important to decide how and who you may want to manage your account with. Learn more about brokerage accounts and how you can start investing:
Standard Brokerage Account
Easily deposit money and sell investments with a standard brokerage account. This type of account has penalty-free withdrawals and few restrictions. It also has no contribution limits and is a flexible investment tool, a bonus when dealing with the stock market.
Individual Brokerage Account
Only one account owner's name is attached to an individual brokerage account. This is the only person who can control the contributions, distributions, and trades for the account.
Joint Brokerage Account
This account is shared by two or more account owners. Joint brokerage accounts can be useful for those sharing finances with a spouse, family member, or business partner who's working toward a common financial goal. There are three types of joint brokerage accounts:
Joint Tenants with Rights of Survivorship
Owners have equal rights to the account. If one owner passes, the survivor will receive the descendant's share.
Tenants in Common
With this type of account, if one owner passes, their share of the account passes to their estate. There is no survivorship for the other account owner.
Community Property
This type of account is owned by a married couple. Assets are split 50/50 between each spouse. In the case that one passes, their share will go to their estate. This type of account is only available in AZ, CA, ID, LA, NM, NC, TX, WA and WI.
Common Brokerage Account Features
After opening an account and depositing money, you can start buying investments. Another advantage to brokerage accounts is the ability to add features to your account, including:
Check Writing
Once your account has been funded, you can also take advantage of free standard checks and a debit card, allowing you to deposit and withdraw money from your account quickly and easily.
Margin Loans
You can access cash by borrowing against securities in your account when you trade on margin. In some cases, this amount can be up to 50% of your account's value. Margin loans from a Matisse brokerage account can help you with your immediate financial needs without involving another lender, or they can help you make opportunistic new investments in a fast-paced market.
Options Trading
An option is a contract to buy or sell an asset (like a stock, ETF, or fund) at a specific price in a predetermined timeframe. Options allow investors to potentially generate income, speculate on the market, and protect their portfolios, but there are also risks. Most brokerage account custodians require approval before an account owner can trade options to make sure investors are considering the risks and benefits.
Options carry a high level of risk and are not suitable for all investors.
Common Questions
The information presented in Common Questions is for the purpose of general education and does not address the investment nor legal considerations of any individual. The opinions are of Matisse Capital.