What is the difference between a trading account at a brokerage firm and opening an online stock account?

A brokerage account is one that will help you trade in stocks, mutual funds and other investments. You can deposit investments in the firm and then carry out transactions. You can choose to open your account with a minimum amount. Once you have set your brokerage account, you can start trading in stocks. You can also choose to set up automatic withdrawals that will transfer money to your brokerage account every month.

An online stock account helps you trade in stocks. You must open an online stock account if you want to trade in stocks online. It is the first step. These accounts help you get started with your trade. It is simple to open an online stock account. You must fill in personal details and is usually for people above 18. Nowadays kids also have online stock accounts, but these are usually under the supervision of parents/guardians.

Now, to answer the question about what is the difference between an account in a brokerage firm and an online stock account. Virtually there exists no difference between the two. Both are aimed at shoveling your stock trade business. Both will let you make investments. The difference lies that in a brokerage account, you have to talk to your broker over the phone and ask him to place orders. Whereas in an online account, you have to place orders yourself, by visiting the website of that broker. The online account is more handy as your aren’t dependent upon anyone.

The online account costs less as you are working sitting at your desk and not on telephone. You also don’t need to be at the mercy of someone else’s time as with an online account you could choose to work whenever you want to;  at your own convenience.

A brokerage account or an online stock account are both the first step in furthering your stock trade, though a thin line of difference exists between the two.