What's a brokerage account?
A brokerage account is a standard nonretirement investing account. You can hold mutual funds, ETFs (exchange-traded funds), stocks, bonds, and more, which can generate returns and help you grow your savings. Use it to save for any goal, and take your money out anytime with no early withdrawal penalty.
How does a brokerage account work?
A brokerage account is like a basket that holds your investments. Once you put money into your account, you may want to allocate your assets to specific investments. You can place trades in your account to buy those investments, including mutual funds, ETFs, stocks, bonds, and more.
What are the different types of brokerage accounts?
There are 2 types: individual brokerage accounts and joint brokerage accounts. An individual account has only 1 account owner. A joint account has 2 or more account owners.
Is a brokerage account right for me?
If you’re looking to save for goals like a new car, a wedding, or an emergency fund for house repairs, this flexible account may be for you. On the other hand, if you’re hoping to save for retirement or education, you may want to consider opening an IRA or a Vanguard 529 Savings Plan account instead.
- See your accounts at a glance
- What are the different types of brokerage accounts?
- Is a brokerage account right for me?
- See your accounts at a glance
- What are the different types of brokerage accounts?
- Is a brokerage account right for me?
4 simple steps to open an account
Open your Vanguard Brokerage Account and start investing today!
Choose account type
Select an account type based on your goals (retirement, general investing, education, etc.). You can open 1 account at a time.
Transfer money
We'll open your account and initiate a bank transfer (if applicable) to your new account's settlement fund. You can then use this fund to buy investments.
Explore investments
It can take 3 to 7 days for your money to become available for investing. During that time, you can explore products such as ETFs and mutual funds to decide which investments are right for you.
Place your trade
Once your money has fully transferred to your account, you can start investing. To get started, log in to your Vanguard account to place a trade or set up an automatic investment.
Brokerage account versus other accounts
Compare other accounts to the nonretirement Vanguard Brokerage Account and see which may fit your investing goals and needs best.
Vanguard Brokerage Account |
Vanguard Brokerage IRA |
Vanguard 529 account |
|
Purpose of account |
Any savings goal—which can range from buying a new house or car, saving for a wedding or trip, building emergency savings, and much more |
Retirement |
Qualified education expenses—like K—12 private school tuition; tuition at a college, trade school, or vocational school; apprenticeship program expenses; room and board, fees, books, supplies, equipment, computer hardware, and more2 |
Investment options |
Vanguard mutual funds and ETFs. Other mutual funds, ETFs, stocks, bonds, and more |
Vanguard mutual funds and ETFs. Other mutual funds, ETFs, stocks, bonds, and more |
Vanguard 529 Plan portfolios are comprised of different Vanguard mutual funds |
Initial minimum investment |
$0 to open an account1 Mutual funds: Varies per fund3 Vanguard ETFs®: $1 per share Other investments: Market price |
$0 to open an account1 Mutual funds: Varies per fund3 Vanguard ETFs®: $1 per share Other investments: Market price |
$3,000 to open an account ($1,000 for Nevada residents) Minimum additional investment is just $50. |
Account service fees |
$25 annual account fee4 You can avoid this fee—and hold an account at Vanguard for $0—by signing up for electronic delivery of account-related documents. |
$25 annual account fee4 You can avoid this fee—and hold an account at Vanguard for $0—by signing up for electronic delivery of account-related documents. |
The Vanguard 529 Plan: None |
Taxes |
Dividends are often taxed as ordinary income. (In some cases, qualified dividends can receive different tax treatment.) Capital gains—money you've made from selling investments—can also be taxed as ordinary income. The taxation of capital gains can vary depending on the length of time you held the investment. |
Retirement accounts are tax-advantaged—This means your earnings can grow tax-deferred or tax-free within the account. Withdrawals from traditional IRAs after age 59½ will be taxed as ordinary income. Withdrawals from Roth IRAs that have been owned for at least 5 years and at age 59½ or older are tax free.5 |
Some states offer tax incentives. If 529 assets aren't used for qualified higher-education expenses or K—12 tuition, federal income tax and a federal 10% penalty tax is due on earnings (as well as applicable state and local income taxes). Please consult a tax advisor for specific scenarios. |
Contribution limits |
None |
The annual contribution limit for 2025 is $7,000, or $8,000 if you're age 50 or older. |
Minimum additional investment is just $50. Maximum contribution limit is $500,000. |
Withdrawal rules |
None |
Withdrawals before age 59½ may be subject to a 10% penalty tax. |
Nonqualified education expenses may be subject to a 10% penalty tax in addition to a federal income tax on earnings. |
Vanguard Brokerage Account
Purpose of account
Any savings goal—which can range from buying a new house or car, saving for a wedding or trip, building emergency savings, and much more.
Investment options
Vanguard mutual funds and ETFs.
Other mutual funds, ETFs, stocks, bonds, and more.
Initial minimum investment
$0 to open an account*
Mutual funds: Varies per fund***
Vanguard ETFs®: $1 per share.
Other investments: Market price.
Account service fees
$25 annual account fee****
You can avoid this fee—and hold an account at Vanguard for $0—by signing up for electronic delivery of account-related documents.
Taxes
Dividends are often taxed as ordinary income. (In some cases, qualified dividends can receive different tax treatment).
Capital gains—money you've made from selling investments—can also be taxed as ordinary income. The taxation of capital gains can vary depending on the length of time you held the investment.
Contribution limits
None
Withdrawal rules
None
Vanguard Brokerage IRA
Purpose of account
Retirement
Investment options
Vanguard mutual funds and ETFs.
Other mutual funds, ETFs, stocks, bonds, and more
Initial minimum investment
$0 to open an account*
Mutual funds: Varies per fund***
Vanguard ETFs®: $1 per share.
Other investments: Market price.
Account service fees
$25 annual account fee****
You can avoid this fee—and hold an account at Vanguard for $0—by signing up for electronic delivery of account-related documents.
Taxes
Retirement accounts are tax-advantaged—This means your earnings can grow tax-deferred or tax-free within the account.
Withdrawals from traditional IRAs after age 59½ will be taxed as ordinary income.
Withdrawals from Roth IRAs that have been owned for at least 5 years and at age 59½ or older are tax free.†
Contribution limits
The annual contribution limit for 2025 is $7,000, or $8,000 if you're age 50 or older.
Withdrawal rules
Withdrawals before age 59½ may be subject to a 10% penalty tax.
Vanguard 529 account
Purpose of account
Qualified education expenses—like K—12 private school tuition; tuition at a college, trade school, or vocational school; apprenticeship program expenses; room and board, fees, books, supplies, equipment, computer hardware, and more**
Investment options
Vanguard 529 Plan portfolios are comprised of different Vanguard mutual funds
Initial minimum investment
$3,000 to open an account ($1,000 for Nevada residents)
Minimum additional investment is just $50.
Account service fees
$25 annual account fee****
The Vanguard 529 Plan: None
Taxes
Some states offer tax incentives.
See if your state offers one
If 529 assets aren't used for qualified higher-education expenses or K—12 tuition, federal income tax and a federal 10% penalty tax is due on earnings (as well as applicable state and local income taxes).
Please consult a tax advisor for specific scenarios.
Contribution limits
Minimum additional investment is just $50. Maximum contribution limit is $500,000.
Withdrawal rules
Nonqualified education expenses may be subject to a 10% penalty tax in addition to a federal income tax on earnings.
#1 Most Trusted Financial Companies—Online Broker
Awarded in August 2022, based on data as of June and July 2022.6
No compensation was provided to be considered for the award. Compensation provided for use of the rating in marketing materials.
Want to learn more?
The role of your settlement fund
The role of your settlement fund
Smart investment strategies
Smart investment strategies
Frequently asked questions
You can hold a wide variety of investments that trade on the market:
- Mutual funds.
- ETFs.
- Stocks.
- Bonds.
- CDs (certificates of deposit).
- and more.
When you open your Vanguard Brokerage Account and move your money over, the money goes into the account's settlement fund. It can be a safer place to park your money if you need to use it soon, but you likely won't see much fluctuation in its value.
For money you don't need to use soon, you can place trades to buy investments. Once you've bought a mutual fund, ETF, stock, bond, or other investment, your money is invested in that particular security. Otherwise, your money will remain in the settlement fund.
Your settlement fund is like a virtual wallet within your account. You move money into it so that it's available to buy investments. When you sell investments, the proceeds will go to the settlement fund.
A brokerage account is a type of account for investing. You can use it to buy and sell different investments like stocks, bonds, mutual funds, and ETFs. It works by connecting the investor with a brokerage firm, which acts as an intermediary between the investor and the financial markets.
Vanguard Brokerage Account is the name for the brokerage accounts you can open through us.
No, brokerage accounts aren't FDIC-insured. FDIC insurance only applies to deposit accounts, such as checking and savings accounts, at participating banks. Brokerage accounts hold investments such as stocks, bonds, and mutual funds, which aren't insured by the FDIC.
Vanguard accounts are protected by Securities Investor Protection Corporation (SIPC) insurance. This insurance covers up to $500,000 in securities and up to $250,000 in cash if the firm fails. This coverage is automatic and doesn't require any action on the part of Vanguard clients.
Yes, you can open and hold as many brokerage accounts as you'd like. For instance, you might have an IRA brokerage account to help you save for retirement, in addition to a nonretirement brokerage account you can use to build wealth or save for a big purchase.
You typically need a brokerage account to buy stocks. This is because brokers like Vanguard act as intermediaries between investors and the stock market. We help facilitate the buying and selling of stocks on your behalf.
See the Vanguard Brokerage services commission and fee schedules for other fees that may apply.
Earnings on nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements. State tax treatment of withdrawals used for i) expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school, ii) expenses related to apprenticeship programs, or iii) student loan repayments is determined by the state(s) where the taxpayer files state income tax. If you are not a Nevada taxpayer, please consult with a tax advisor.
A $25 annual account service fee is charged for all Vanguard Brokerage Accounts, as well as for each fund held in a legacy mutual fund-only account by clients with less than $5 million in qualifying Vanguard assets. For brokerage clients, Vanguard Brokerage doesn't charge the fee to clients who elect e-delivery of statements and the annual privacy policy notice; confirmations; reports, prospectuses, and proxy materials; and notices, amendments, and other important account updates. In addition, Vanguard Brokerage doesn't charge the fee to clients with at least $5 million in qualifying Vanguard assets. See the full commission and fee schedules for details on additional exclusions.
A $25 annual account service fee is charged for all Vanguard Brokerage Accounts, as well as for each fund held in a legacy mutual fund-only account by clients with less than $5 million in qualifying Vanguard assets. For brokerage clients, Vanguard Brokerage doesn't charge the fee to clients who elect e-delivery of statements and the annual privacy policy notice; confirmations; reports, prospectuses, and proxy materials; and notices, amendments, and other important account updates. In addition, Vanguard Brokerage doesn't charge the fee to clients with at least $5 million in qualifying Vanguard assets. See the full commission and fee schedules for details on additional exclusions.
The 5-year holding period for Roth IRAs starts on the earlier of: (1) the date you first contributed directly to the IRA, (2) the date you rolled over a Roth 401(k) or Roth 403(b) to the Roth IRA, or (3) the date you converted a traditional IRA to the Roth IRA. If you're under age 59½ and you have one Roth IRA that holds proceeds from multiple conversions, you're required to keep track of the 5-year holding period for each conversion separately.
Vanguard received top ratings for "#1 Most Trusted Financial Companies – ETF/Fund Companies" in 2022 among 11 ETF and fund companies selected by Investor's Business Daily (IBD). In partnership with TechnoMetrica, IBD conducted 2 independent polls and surveyed more than 6,500 consumers in June and July 2022. The survey was copresented by IBD's sister company, MarketWatch. After 2 research phases, IBD computed the component scores by taking the difference between the percentage of respondents who gave a very high or high rating and the percentage who gave a low or very low rating to the following attributes and corresponding weightings: quality of products/services (19.09%), ethical business practices and values (16.97%), privacy and security of personal data (16.32%), customer service (16.2%), fair prices and fees (14.15%), company responsiveness to customer needs (12.32%), and innovation of processes/offerings (4.95%). Additional details about IBD's methodology are available on their website. Although Vanguard compensates IBD for marketing services, IBD's opinions and evaluations are independent and unrelated to the selection for this award.
You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free online) or through another broker (who may charge commissions). See the Vanguard Brokerage Services commission and fee schedules for limits. Vanguard ETF Shares are not redeemable directly with the issuing Fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.
For more information about Vanguard funds or Vanguard ETFs, obtain a Vanguard mutual fund or Vanguard ETF prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.
For more information about The Vanguard 529 College Savings Plan, visit vanguard.com to obtain a Program Description, which includes investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor.
If you are not a Nevada taxpayer, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. Other state benefits may include financial aid, scholarship funds, and protection from creditors.
The Vanguard 529 College Savings Plan is a Nevada Trust administered by the office of the Nevada State Treasurer.
The Vanguard Group, Inc., serves as the Investment Manager for The Vanguard 529 College Savings Plan and through its affiliate, Vanguard Marketing Corporation, markets and distributes the Plan. Ascensus Broker Dealer Services, LLC, serves as Program Manager and has overall responsibility for the day-to-day operations. The Plan's portfolios, although they invest in Vanguard mutual funds, are not mutual funds. Investment returns are not guaranteed, and you could lose money by investing in the Plan.
All investing is subject to risk, including the possible loss of the money you invest.
Tax rates will vary based on the individual and on changing tax rates. You may wish to consult a tax advisor about your situation.