And if you want to buy Fidelity Contrafund (FCNTX) you need a Fidelity brokerage account. For example, if you want to buy the Vanguard Total Stock Market index fund (VTSAX) you need a Vanguard brokerage account. This applies to index funds too, as index funds are just a type of mutual fund. While you can buy and sell stocks and ETFs with any brokerage, mutual funds are proprietary products. Simply put, these three brokerages (Vanguard, Fidelity, and Charles Schwab) not only offer traditional brokerage services, but they also offer a large selection of in-house mutual funds and index funds. It’s a bit annoying but I suppose they get an A for effort. In fact, every month when I automatically transfer money from my Chase account into my brokerage account, Chase recognizes the transaction and puts a little message next to it telling me that I can also invest with Chase instead. JP Morgan Chase also offers brokerage services. For example, I use JP Morgan Chase as my bank (for no particular reason over any other national or regional bank). And I should point out that many financial institutions offer both banking and brokerage services, so the distinction between a bank and brokerage can get a little blurry. Much like banks, there are multiple brokerages out there vying for your business.

When it comes to brokerages, we are a bit spoiled for choice. If you want to buy and sell stocks, ETFs, options, bonds, mutual funds, and index funds, you need a brokerage account. If you want to write checks, you need a checking account. I do not endorse any product or service.Ī brokerage is an institution that offers broker services, much like a bank is an institution that offers banking services. The views in this article are my opinion only.

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