IN THIS LESSON

Getting started, Access granted…

A personal investment journey must start with a platform.

The video posted alongside this lesson will dive into how to open an account.

Opening a stock brokerage account in the United States typically requires providing a variety of personal, financial, and identifying information, as well as a way to fund the account.

The exact requirements can vary slightly by brokerage firm, but here are the essential things you will need:

1. Personal and Identifying Information

This information is required by federal law (like the USA PATRIOT Act) to verify your identity and help prevent money laundering and terrorist financing.

  • Legal Name

  • Date of Birth

  • Social Security Number (SSN) or Taxpayer Identification Number (TIN)

    • Note: Non-U.S. citizens may need to provide a foreign passport and a U.S. TIN or other acceptable identification.

  • Physical Address (A P.O. box may be used for mailing, but a physical residential address is required.)

  • Contact Information (Phone number and email address)

  • Government-Issued Photo ID

    • Examples include a U.S. Driver's License or Passport. For online applications, you may be asked to upload a photo of your ID.

2. Employment and Financial Details

Brokerage firms are required to collect this information to assess your suitability for certain investments and to comply with financial regulations.

  • Employment Status and Occupation

  • Employer's Name and Address

  • Annual Income

  • Estimated Net Worth

  • Investment Experience (Your knowledge and experience with different types of investments like stocks, options, etc.)

3. Account Funding Information

You will need to be able to transfer money into your new brokerage account.

  • Bank Account Details

    • Bank Name

    • Bank Account Number (for checking or savings)

    • Bank Routing Number

  • Initial Deposit (If required)

    • Many modern brokerages offer accounts with a $0 minimum deposit. However, some may require a minimum deposit to begin investing.

4. Investment Profile and Objectives

The brokerage firm will ask about your goals to ensure they provide suitable recommendations and access to appropriate account features.

  • Investment Objectives (e.g., long-term growth, income, speculation)

  • Time Horizon (How long you plan to invest)

  • Risk Tolerance (How much risk you are comfortable taking)

  • Type of Account

    • You will need to choose the type of account, such as an Individual or Joint brokerage account, or a tax-advantaged account like an IRA (Individual Retirement Account).

  • Account Features

    • You may be asked if you want to apply for features like margin trading (borrowing money to trade) or options trading, which may require additional information and approval.

General Requirements

Age: You must generally be 18 years or older to open a standard individual brokerage account. Parents can open custodial accounts (like UGMA/UTMA) for minors

The Robinhood link below will take you to a sign up page, using this link specifically will give you 5-20$ free worth of a stock of your choosing. Robinhood is a user friendly, beginner friendly platform.

Robinhood, Free $5 in stock