Brokerage Account

A brokerage account is the account you open with a broker to hold cash and securities and to place trades. A standard cash account requires paying for securities in full; a margin account lets you borrow against your holdings to buy more than your cash balance alone would allow.

US brokerage accounts are protected by SIPC insurance up to $500,000 (including a $250,000 cash sublimit) if the brokerage itself fails, which protects against the firm's insolvency but not against the investments inside the account losing value. It is not deposit insurance and does not cover market losses.