What are brokerage accounts for?
To engage in investments, it is necessary to open a brokerage account, because without it, individuals cannot buy or sell shares on their own. There are many reasons, below are 5 of them.
- Market Access
Brokerage firms provide individuals with access to stock exchanges and various financial markets. All market transactions are executed through licensed brokers who possess the required regulatory authorizations and technological infrastructure. -
Regulatory Requirements
The trading of equities and other securities is overseen by financial regulatory authorities. Brokerage firms operate under the appropriate licenses and comply with all regulatory obligations, ensuring the legality and security of executed transactions. -
Technological Capabilities
Brokerage firms are equipped with advanced trading platforms and software solutions—such as our Cube Broker platform—that enable fast, efficient, and reliable execution of trades. Individual investors typically lack the technology and infrastructure necessary to carry out such transactions independently. -
Professional Expertise and Advisory Services
Brokerage firms offer professional advisory services and analytical insights that help investors make informed and well-reasoned investment decisions. Individual investors often lack the expertise and experience required to navigate the markets independently. -
Security and Protection
Brokerage firms provide a high level of security measures to safeguard clients’ funds and personal data. This level of protection is difficult for individuals to achieve without the support of a specialized and regulated brokerage firm.
