What is the difference between a Roth IRA and a brokerage account?

A Roth IRA is an account designed specifically for retirement and offers tax advantages when you invest in one. A brokerage account is a taxable investment account that gives you more flexibility than a Roth IRA. You can open both a Roth IRA and a brokerage account, but if you haven't started saving for retirement yet, prioritize the Roth IRA.

Should I start a Roth IRA or a brokerage account?

Two such options to consider are the non- tax-advantaged brokerage account and the Roth IRA, each of which has its own set of pros and cons. Starting a brokerage account to save for the future or for retirement gives you access to the stock market, mutual funds, and other securities.

What is a brokerage account & IRA?

Brokerage accounts and IRAs are investment accounts that allow you to buy and sell stocks, ETFs, bonds, mutual funds, real estate investment trusts (REITs), and other securities. Investors generally use brokerage accounts for day trading, long-term investing, and saving for short-term financial goals like buying a house or car.