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finance investing brokerage
Best brokerage accounts in February 2026
A brokerage account is an investment account for buying and selling stocks, bonds, mutual funds, and ETFs or exchange traded funds.
What is a Brokerage Account?
A brokerage account is your gateway to the stock market. It’s a specialized bank account that lets you buy and sell investments like stocks (Apple, Tesla), ETFs (S&P 500), and crypto.
Unlike a savings account where your money sits and earns interest, a brokerage account lets you invest your money to potentially grow it significantly over time.
Types of Brokerage Accounts
- Taxable Brokerage Account: The standard account. You can withdraw money anytime without penalty, but you pay taxes on any profit (capital gains) you make.
- Retirement Accounts (IRAs):
- Roth IRA: You invest money you’ve already paid taxes on. It grows tax-free, and you can withdraw it tax-free in retirement.
- Traditional IRA: You get a tax break now (deducting contributions), but you pay taxes when you withdraw the money in retirement.
Which one should you choose?
- For Long-Term Wealth: Open a Roth IRA first. The tax-free growth is unbeatable for retirement planning.
- For Flexibility: Open a Taxable Account. Use this if you might need the money before you retire (e.g., for a house down payment in 5-10 years).
How to understand the table below
- APY (on uninvested cash): The interest the broker pays you on cash sitting in your account that isn’t invested in stocks.
- Options Contract Fee: The fee charged per contract when trading options. Standard is $0.65, though some are free.
- Fractional Shares: Allows you to buy $5 of a stock like Netflix (trading at ~$600+) instead of needing to buy a whole share. Essential for beginners.
Top Brokerage Accounts (February 2026)
Ordered by APY on uninvested cash and feature set:
| APY (Cash) | Institution | Min to Open | Options Fee | Fractional Shares |
|---|---|---|---|---|
| 4.05%+ | Betterment (Cash Reserve) → | $0 | N/A | Yes |
| 3.35% | Moomoo → | $0 | $0.65 | Yes |
| 3.35% | Vanguard (Cash Plus) → | $0 | $1.00 | No |
| 3.35% | Webull → | $0 | $0.00* | Yes |
| 3.33% | Fidelity → | $0 | $0.65 | Yes |
| 3.31% | Charles Schwab → | $0 | $0.65 | Yes (Slices) |
| 3.30% | Public.com → | $0 | Share of Revenue | Yes |
| 3.30% | Wealthfront → | $1 | N/A | Yes |
| 3.25% | Robinhood (Gold) → | $0 | $0.00 | Yes |
| 3.14% | Interactive Brokers (Pro) → | $0 | $0.65 | Yes |
Comparisons at a Glance
| Feature | Brokerage Account | Retirement (IRA) | Checking Account |
|---|---|---|---|
| Primary Goal | Growth (Investing) | Retirement (Tax Advantages) | Spending (Bills/ATM) |
| Taxes | Pay Capital Gains | Tax-Advantaged | Taxed on Interest |
| Withdrawals | Unlimited | Penalties before age 59½ | Unlimited |
| Risk & Insurance | Market Risk (SIPC $500k / FDIC Cash) | Market Risk (SIPC $500k / FDIC Cash) | None (FDIC $250k) |
Disclaimer: This is not a financial advice and Maxint is not affiliated with any financial instiution, product or service.