A brokerage account is your gateway to the stock market — it's the account where you buy and sell stocks, ETFs, options, and other investments. Think of it like a bank account, but instead of just holding cash, it holds your investments too. You can't buy stocks without one. The good news: opening a brokerage account is easier than signing up for a streaming service. Most brokers offer commission-free trading on stocks and ETFs, and many have no account minimums — you can literally start with $1. The three biggest retail brokers are Fidelity, Charles Schwab, and Robinhood, and each has a slightly different flavor.

To open an account, you'll need a few basics: your Social Security number (for tax reporting), a government-issued ID, your date of birth, your address, and your employment information. The broker will also ask about your income and net worth — this isn't to judge you, it's required by federal regulations (called KYC — Know Your Customer). Most brokers also ask about your investment experience and risk tolerance to make sure you have access to appropriate products. The whole process takes about 10-15 minutes online. Once approved, you link your bank account and transfer money in. Transfers typically take 1-3 business days, though some brokers offer instant deposits so you can start trading immediately.

Choosing between brokers comes down to what matters to you. Fidelity is the gold standard for long-term investors — they offer fractional shares, excellent research tools, zero-fee index funds, and world-class customer service. Schwab (which merged with TD Ameritrade) is similar to Fidelity with strong tools and education. Robinhood has the cleanest, simplest interface and pioneered commission-free trading — it's great for beginners who want to start fast, but has fewer research tools and has faced criticism over gamification and payment for order flow. For options trading specifically, platforms like Thinkorswim (now part of Schwab) and Tastytrade offer more advanced tools.

There are a few important account types to understand. A standard brokerage account (also called a taxable account) has no restrictions on deposits or withdrawals, but you'll owe taxes on capital gains and dividends. A Roth IRA is a retirement account where your investments grow tax-free — you pay taxes on money going in, but withdrawals in retirement are completely tax-free. The 2025 contribution limit is $7,000 per year ($8,000 if you're over 50). If you're just starting out and don't need the money for decades, a Roth IRA is arguably the single best account to open first. Start with a Roth IRA for long-term wealth building, and open a standard brokerage account when you want more flexibility or have maxed out your Roth.