The Simple Answer
Stocks are traded through financial marketplaces called exchanges. The New York Stock Exchange and Nasdaq are examples of exchanges, but most people do not interact with them directly. Instead, an individual opens an account with a brokerage. The brokerage provides the website or app used to search for investments, submit orders, view account balances, and track positions.
Investor
Brokerage
Market Exchange
What Is a Brokerage Account?
A brokerage account is an investment account that can be used to buy and sell assets such as stocks and exchange-traded funds, commonly called ETFs. It is different from a regular checking or savings account. Investments held inside a brokerage account can rise or fall in value, and money can be lost.
Open an Account
Choose a brokerage, provide the required personal information, and complete its identity-verification process.
Add Money
Connect a bank account and transfer money into the brokerage account.
Place an Order
Search for an investment using its ticker symbol, choose the number of shares, and submit an order.
Cash Accounts and Margin Accounts
BEST PLACE TO BEGIN LEARNING
Cash Account
You purchase investments using money already available in the account.
Margin Account
The brokerage may allow an investor to borrow money to purchase investments. Borrowing introduces interest costs and additional risk.
Boom Stalker’s beginner lessons will focus on understanding the cash-account process first. Margin trading will be covered separately as a more advanced topic.
Examples of Brokerage Platforms
The companies below are examples of brokerage platforms where eligible investors may open accounts. Boom Stalker is not affiliated with these companies and is not recommending one platform for every person.
These examples are provided for educational comparison only. Account requirements, services, costs, eligibility, and platform features may change. Review each company’s official information before opening an account.
What Should a Beginner Compare?
Account and trading fees
Ease of using the website or app
Customer support
Fractional-share availability
Educational and paper-trading tools
You Are Not Buying Anything Yet
This first lesson is only about understanding where investing transactions happen. Before submitting a real order, you should understand shares, ticker symbols, market orders, limit orders, bid, ask, stops, targets, and the amount of money that could be lost.
The stock exchange is the marketplace. The brokerage is the website or app you use to access that marketplace.
KEY TAKEAWAY
Boom Stalker provides educational and research information only. It does not provide personalized financial advice, brokerage services, or instructions to buy or sell any security. Investing and trading involve risk, including the possible loss of capital. External platforms are operated independently, and their features, fees, and availability may change.