A brokerage account is used for settlements: money is deposited to purchase securities and funds from sales, coupon payments, and dividends are credited to it. Securities themselves are recorded separately—in a custody account at a depository.
The distinction between the two accounts has practical significance. Money in a brokerage account is not a bank deposit and is not covered by deposit insurance, while securities in a custody account remain the investor's property and can be transferred to another professional participant if the broker ceases operations.
Opening an account requires client identification and signing a broker services agreement. Before depositing funds, clarify three things: how to submit orders, the timeline and cost of withdrawals, and the format of transaction reports—these will be needed to track results and confirm ownership.