The brokerage account is a special account for trading securities on the stock exchange.
The broker acts as an intermediary between the private investor and the exchange. By law, an ordinary person cannot carry out transactions on the stock exchange directly, so the person gives orders to the broker, and the broker buys or sells financial assets on behalf of the customer. You need the brokerage account to record such assets.
Brokerage account is required to:
1. Execute orders to buy and sell securities;
2. Register acquired shares as ownership;
3. Draw stock dividends.
That is, any action in the market is impossible without the brokerage account. Purchased shares, dividends, and realized income will be credited to such account.