What is a brokerage account?

A brokerage account allows you to buy and sell everything from stocks and bonds to mutual funds, currency, futures and options contracts, depending on the broker. Over the long term, the return on a diversified investment portfolio is much greater than a savings account interest rate, which likely won’t beat inflation.

What is cryptocurrency?

A cryptocurrency is a digital currency that can be used to buy goods and services, but uses an online ledger with strong cryptography to secure transactions. Much of the interest in crypto is to trade for profit. You can buy crypto through some online brokers, or through crypto exchanges.

Investing

Navigating your way to retirement? We can help. By comparing top online brokerages side-by-side, you can find the smartest investing accounts for your future.

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Investing tools

Our picks

Best brokers for stock trading

See our ratings of top online brokerages.

Brokers

Compare online brokers

Read our expert ratings and reviews.

Calculator

Calculate your retirement needs

Find out if you’re on track to retire.

Financial advisors

View the best financial advisors

Get help managing your investments.

Cryptocurrency

See the best crypto exchanges

See the best crypto exchanges.

Ethical finance

Get investing & banking resources

Align your money with your values.

Dive Deeper

Explore By:

Retirement planning

Real estate & alternative investments

Our picks by category

Featured video

6:38

How to build a low-cost portfolio with index funds

Building the best investment portfolio for you can be challenging. There are lots of investment choices — how do you know which is the best? That's where index funds come in, which can help you build a well-diversified portfolio instantly while still allowing you to take advantage of stock market returns.

Read up on retirement planning

5 Steps to Retirement Planning in 2023: An Introduction & How-to Guide

by Tina Orem, June Sham

What Is an IRA? Individual Retirement Account Definition, 5 Types

by Andrea Coombes, Tina Orem, Elizabeth Ayoola

What Is a Roth IRA? Definition & How to Open

by Tina Orem, Elizabeth Ayoola

401(k) Rollovers: A Quick-Start Guide

by Arielle O'Shea, Tina Orem

From our partners

Commission-free stock, options, mutual fund and ETF trades. Other fees apply.

E*TRADE

Get $100 when you open a new, eligible Fidelity account with $50 or more. Use code FIDELITY100. Limited time offer. Terms apply.

Fidelity

Get $50 when you open & fund a new J.P. Morgan Self-Directed Investing account with $5K on Chase.com or the Chase Mobile® app.

J.P. Morgan Self-Directed Investing

Investing FAQ

What is an IRA?

An IRA or individual retirement arrangement is a tax-deferred investment account that helps you save for retirement. You can open an IRA at banks, robo-advisors and brokers. Depending on which type of IRA you choose, your contributions may be tax-deductible or withdrawals may be tax-free.

401(k) vs. Roth IRA: Which is best?

Both 401(k)s and IRAs — including Roth IRAs — have valuable tax benefits, and you can often contribute to both types of accounts. The main difference between 401(k)s and IRAs is that employers offer 401(k)s, but individuals open IRAs on their own, through a broker or bank. IRAs typically offer more investment options, but 401(k)s allow higher annual contributions.

How much will you need to retire?

When saving for retirement, most experts recommend an annual retirement savings goal of 10% to 15% of your pre-tax income. High earners generally want to hit the top of that range; low earners can typically hover closer to the bottom since Social Security may replace more of their income.

How do you invest in stocks?

Investing in stocks means buying shares of ownership in a public company. Those small shares are known as the company’s stock, and by investing in that stock, you’re hoping the company grows and performs well over time. When that happens, your shares may become more valuable, and other investors may be willing to buy them from you for more than you paid for them. That means you could earn a profit if you decide to sell them.

Online broker reviews

Fidelity Investments Review 2023: Pros, Cons and How It Compares

5.0

NerdWallet rating

Fidelity is one of the most well-rounded brokerages available today, with no commissions on stock or ETF trades and a selection of no-expense-ratio index funds suited to both beginner and active investors.

SoFi Active Investing Review 2023: Pros, Cons and How It Compares

4.1

NerdWallet rating

SoFi Active Investing is geared toward young investors getting their start in trading, with commission-free trades of stocks, ETFs and fractional shares. SoFi also offers cryptocurrency trading.