How to Establish a Brokerage Account for Business (2024)

By Chron Contributor Updated September 23, 2020

If you're a small business owner looking to leverage your cash with high-yield money market funds, interest-bearing checking, ATM privileges and the convenience of paying bills (or your employees) online, a brokerage account could fit the bill.

With a brokerage account, you can trade stock or use it as an investment account. Small business proprietors prefer to incorporate them to manage cash, track expenses, setup automatic recurring payments and transfer funds between multiple accounts. Minimum opening deposits and fees will vary. You can set up these accounts online in minutes.

Business Brokerage Account Basics

Make a list of features you absolutely need for your business account. For example, your ideal brokerage account might allow low minimum balances without penalty fees. An ATM card that reimburses charges for nonbank withdraws could rate high on your list. If you intend to trade at all, an account that charges competitive commission rates or offers commission-free trades on certain products could make the cut.

Find Companies to Scout

Pick three or four companies to scout. Look at the majors first, including Charles Schwab, Fidelity business account and TD Ameritrade. At first blush, low fees and commissions appear alluring. But small fly-by-night brokerage firms that tout extremely low fees and poorly designed websites generally have shoddy customer service as well. Stick with established firms, suggests Forbes.

Visit the websites of the companies on your shortlist. Read the very fine print on disclosure statements. Learn which brokerages give the option to earn interest on your cash from a choice of publicly traded money market funds. Take advantage of a live chat function to speak directly to a customer service agent. Check to see whether you can open an account via telephone.

It's also a good idea to read customer reviews of the companies on your short list. It's true there's plenty of gruff in the midst of reasonable assessments. If the same problem has numerous mentions, however, it could be a preview of troubles ahead.

Open and Fund the Account

For accounts created online, you can digitally sign and then download all the forms and disclosure and risk statements. Expect to answer questions on your level of trading experience. A brokerage company is required to alert you to the risks of trading.

Manage Your Business Investment Account

Build your account profile and set up banking transfers. Create your bill pay and expense tracking accounts. Take the time to create account alerts (i.e., low funds, bill due). If you plan on buying stocks, become familiar with the trading platform and learn how to place orders.

Note that you can link multiple external bank accounts to your brokerage account and use it as a "hub", that is, your primary account for all banking transactions.

How to Establish a Brokerage Account for Business (2024)
Top Articles
Latest Posts
Article information

Author: Mr. See Jast

Last Updated:

Views: 6009

Rating: 4.4 / 5 (55 voted)

Reviews: 86% of readers found this page helpful

Author information

Name: Mr. See Jast

Birthday: 1999-07-30

Address: 8409 Megan Mountain, New Mathew, MT 44997-8193

Phone: +5023589614038

Job: Chief Executive

Hobby: Leather crafting, Flag Football, Candle making, Flying, Poi, Gunsmithing, Swimming

Introduction: My name is Mr. See Jast, I am a open, jolly, gorgeous, courageous, inexpensive, friendly, homely person who loves writing and wants to share my knowledge and understanding with you.