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Brokerage account

An account with a licensed market participant through which orders in securities are placed.

How to read the number

The account itself holds no securities: they are recorded at the depository, and the broker merely executes instructions.

When the metric lies

The state deposit insurance scheme does not extend to a brokerage account. That does not make securities less safe — their protection works differently, through the record of ownership.

Also known as: brokerage account

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