What's a brokerage account?
A brokerage account is a standard nonretirement investing account. You can hold mutual fundsETFs (exchange-traded funds)stocksbondsand morewhich can generate returns and help you grow your savings. Use it to save for any goaland 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 accountyou may want to allocate your assets to specific investments. You can place trades in your account to buy those investmentsincluding mutual fundsETFsstocksbondsand 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 cara weddingor an emergency fund for house repairsthis flexible account may be for you. On the other handif you’re hoping to save for retirement or educationyou 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 (retirementgeneral investingeducationetc.). 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 timeyou 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 accountyou can start investing. To get startedlog in to your Vanguard account to place a trade or set up a recurring 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 carsaving for a wedding or tripbuilding emergency savingsand much more |
Retirement |
Qualified education expenses—like K—12 private school tuition; tuition at a collegetrade schoolor vocational school; apprenticeship program expenses; room and boardfeesbookssuppliesequipmentcomputer hardwareand more2 |
Investment options |
Vanguard mutual funds and ETFs. Other mutual fundsETFsstocksbondsand more |
Vanguard mutual funds and ETFs. Other mutual fundsETFsstocksbondsand 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 |
$1,000 to open an account ($500 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 casesqualified 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 tuitionfederal 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 2026 is $7,500or $8,600 if you're age 50 or older. |
Minimum additional investment is just $50. Maximum lifetime 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 carsaving for a wedding or tripbuilding emergency savingsand much more.
Investment options
Vanguard mutual funds and ETFs.
Other mutual fundsETFsstocksbondsand 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 casesqualified 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 fundsETFsstocksbondsand 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 2026 is $7,500or $8,600 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 collegetrade schoolor vocational school; apprenticeship program expenses; room and boardfeesbookssuppliesequipmentcomputer hardwareand 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 tuitionfederal 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.
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 overthe money goes into the account's settlement fund. It can be a safer place to park your money if you need to use it soonbut you likely won't see much fluctuation in its value.
For money you don't need to use soonyou can place trades to buy investments. Once you've bought a mutual fundETFstockbondor other investmentyour money is invested in that particular security. Otherwiseyour 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 investmentsthe 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 stocksbondsmutual fundsand ETFs. It works by connecting the investor with a brokerage firmwhich 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.
Nobrokerage accounts aren't FDIC-insured. FDIC insurance only applies to deposit accountssuch as checking and savings accountsat participating banks. Brokerage accounts hold investments such as stocksbondsand mutual fundswhich 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.
Yesyou can open and hold as many brokerage accounts as you'd like. For instanceyou might have an IRA brokerage account to help you save for retirementin 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.
1See the Vanguard Brokerage services commission and fee schedules for other fees that may apply.
2Earnings on nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty taxas 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 publicprivateor religious schoolii) expenses related to apprenticeship programsor iii) student loan repayments is determined by the state(s) where the taxpayer files state income tax. If you are not a Nevada taxpayerplease consult with a tax advisor.
3Minimum initial investment requirements for most mutual funds range from $1,000 to $100,000 depending on the fund and the share classbut some may be higher. Details are provided in each fund profile.
4A $25 annual account service fee is charged for all Vanguard Brokerage Accountsas 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 clientsVanguard Brokerage doesn't charge the fee to clients who elect e-delivery of statements and the annual privacy policy notice; confirmations; reportsprospectusesand proxy materials; and noticesamendmentsand other important account updates. In additionVanguard 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.
5The 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 IRAor (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 conversionsyou're required to keep track of the 5-year holding period for each conversion separately. 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 ETFyou will pay or receive the current market pricewhich may be more or less than net asset value.
For more information about Vanguard funds or Vanguard ETFsobtain a Vanguard mutual fund or Vanguard ETF prospectus orif availablea summary prospectus. Investment objectivesriskschargesexpensesand other important information about a fund are contained in the prospectus; read and consider it carefully before investing.
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 on Vanguard.com 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 ETFyou will pay or receive the current market pricewhich may be more or less than net asset value.
For more information about The Vanguard 529 College Savings Planvisit vanguard.com to obtain a Program Descriptionwhich includes investment objectivesriskschargesexpensesand other information; read and consider it carefully before investing. Vanguard Marketing CorporationDistributor.
If you are not a Nevada taxpayerconsider 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 aidscholarship fundsand protection from creditors.
The Vanguard 529 College Savings Plan is a Nevada Trust administered by the office of the Nevada State Treasurer.
The Vanguard GroupInc.serves as the Investment Manager for The Vanguard 529 College Savings Plan and through its affiliateVanguard Marketing Corporationmarkets and distributes the Plan. Ascensus Broker Dealer ServicesLLCserves as Program Manager and has overall responsibility for the day-to-day operations. The Plan's portfoliosalthough they invest in Vanguard mutual fundsare not mutual fundsneither are the Vanguard Short-Term Reserves Account and Bank Savings Portfolio. Investment returns are not guaranteed (except as described in the Program Description for investments in the FDIC-Insured Bank Savings Portfolio)and you could lose money by investing in the Plan.
All investing is subject to riskincluding 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.