What is an investment account?

An investment account is an account with a broker or bank that allows you to buy, sell and hold investments. It is the place where your shares, bonds or funds are administratively held. Without an investment account, you cannot independently trade on the stock market. 


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Through an investment account, you gain access to the financial markets. 

 

This account shows both your invested capital and any cash balance. When you buy a share, it is credited to your investment account. When you sell a share, the amount is credited as cash to the same account. The investment account provides insight into the current value of your portfolio, your transactions and your returns. The provider may charge fees for this, such as transaction fees or service fees. 

 

 

 

 

 

 

 


Short example:

 

Suppose you deposit €2,000 into your investment account. You buy shares worth €1,500. Those shares appear in your portfolio overview. The remaining €500 stays as cash on your account. If you later sell the shares for €1,600, that amount is credited to your investment account. 

 


Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult a professional advisor when making financial decisions. The information and tips provided on this website are based on the personal insights and experience of our analysts and are intended for educational purposes only. 

 

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