Best brokerage accounts
How brokerage accounts work, which type to choose, and the top brokers by APY on uninvested cash as of February 2026.
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 (as of February 2026)
Ordered by APY on uninvested cash and features. Rates and fees change often, so check the broker’s site for current terms.
| 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 financial advice. Maxint is not affiliated with any financial institution, product or service.