Is a brokerage account the same as a bank account?

No. A brokerage account is used to buy and sell securities (stocks, ETFs , bonds, mutual funds, and other assets) and is SIPC insured , protecting up to $500,000 per customer, of which $250,000 can be cash. Many of the best stock brokers offer “bank-like” services in their brokerage accounts, such as checking, bill pay, and debit cards, but assets in those accounts are not FDIC insured. Some brokers can automatically roll your cash balances into several banks to provide more FDIC insurance coverage beyond the individual bank limit of $250,000. StockBrokers.com co-founder Blain Reinkensmeyer breaks down how a bank-brokerage works. { "@context": "http://schema.org", "@type": "VideoObject", "name": "What is a Bank + Stock Brokerage Combo? | StockBrokers.com", "description": "Looking for an all-in-one financial solution? Consider a bank/broker combo for convenience, reward perks, and more. Check out our guide to learn more: https://www.stockbrokers.com/guides/banking-services?utm_source=youtube&utm_medium=social&utm_campaign=non_organic #stocks #stockmarket #financialwellness #broker #trading", "thumbnailUrl": "https://i.ytimg.com/vi/uz2Z16y1ryo/default.jpg", "uploadDate": "2022-11-22T21:38:48Z", "duration": "PT59S", "embedUrl": "https://www.youtube.com/embed/uz2Z16y1ryo", "interactionCount": "200" }

What is a brokerage account at a bank?

A brokerage account at a bank allows you to invest where you take care of traditional banking transactions, like taking out a car loan or paying bills. Financial services holding companies such as J.P. Morgan Chase & Co. and Bank of America can own both FDIC-insured banks and security brokers, which have different rules and different regulators than banks. Bank-owned brokers usually make it very simple to bank and invest at the same firm.

What is a brokerage checking account?

A brokerage checking account typically allows you to write and deposit checks. There are a number of banks with brokerage accounts that provide check writing and/or debit cards. Check to see if there are fees associated with how you intend to use the account. If you decide to write checks or charge from your brokerage account, be sure to monitor your account balance to maintain a proper cash allocation. Some brokers can link your check writing to borrowing on margin. The good news is that you can access cash very quickly if you need it and, because your investments are collateral for the loan, the interest rates can be much lower than credit cards. The bad news is that margin is a loan that has to be repaid. Just as it can be easy to max out a credit card, it can also be easy to spend down your investment account. Always monitor your spending.

What are the best banks with brokerage accounts?

My testing and long personal experience puts Merrill Edge , a part of Bank of America, as the best broker/bank combo for clients who have roughly equal banking and brokerage needs. Chase, along with its J.P. Morgan Self-Directed Investing , is another fine choice. Chase has an innovative financial planning tool, Wealth Plan, that earned our Best New Tool award back in 2024. Ally and its broker arm, Ally Invest , offer services and content that will appeal to savers and investors who are just getting started.

What is the difference between a brokerage account and a cash management account?

Think of a cash management account as a brokerage account with a debit card and other bank-like features. The cash management feature enables you to use a debit card to spend any uninvested cash in your brokerage account. Your debit card can be used for everyday purchases such as groceries, dining, entertainment, and leisure. As always, be careful not to spend money you don’t have.

Is a brokerage account safer than a bank account?

Both your brokerage account and your bank account typically carry insurance, the former through the SIPC and the latter through the FDIC. In that sense, both are safe, but FDIC insurance is considered a stronger guarantee than the industry-backed SIPC. Banks do not offer the ability to buy and sell stocks in checking or savings accounts, so, if you want to invest, you’ll have to open a broker account.

Can you buy stocks with a debit card?

No, you cannot use a debit card to buy stocks, at least not directly. Some brokers will allow you to use a debit card to fund your account with cash; then you can buy stock within the account. We don’t recommend choosing a broker based on whether it accepts debit card funds, because brokers accept ACH deposits, which is just as easy, and a few brokers give instant credit once the deposit is entered. Banks do not offer the ability to buy and sell stocks in checking or savings accounts.

Best Bank Accounts for Trading Stocks for 2025

Name: What is a Bank + Stock Brokerage Combo? | StockBrokers.com
Uploaded: 2022-11-22T21:38:48Z
Duration: 59 s
Description: Looking for an all-in-one financial solution? Consider a bank/broker combo for convenience, reward perks, and more. Check out our guide to learn more: https://www.stockbrokers.com/guides/banking-services?utm_source=youtube&utm_medium=social&utm_campaign=non_organic #stocks #stockmarket #financialwellness #broker #trading

Written by Sam Levine, CFA, CMT
Edited by Carolyn Kimball
Fact-checked by Steven Hatzakis
Reviewed by Blain Reinkensmeyer

February 05, 2025

Rather than juggling usernames and passwords for your financial accounts across different providers, you can keep your finances consolidated within a single firm by using a bank brokerage. While the lack of diversification can be a risk, bank brokers often offer incentives for people who open multiple types of financial accounts with a large overall balance.

To determine which online brokerage offers the best bank broker experience, we evaluated and tested (when appropriate) cash management tools across 16 brokers, starting with traditional banking products — e.g., checking accounts, savings accounts, debit cards, credit cards, and mortgages. Then I looked for other features such as mobile check deposit, debit card ATM fee reimbursement, no-fee banking, and access to local branch offices.

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Winners Summary

Best bank brokerage - Merrill Edge (Bank of America)

Company	Minimum Deposit	Stock Trades	Options (Per Contract)
Merrill Edge	$0.00	$0.00	$0.65

Merrill Edge, part of Bank of America, provides a comprehensive suite of personal banking products, including savings accounts, checking accounts, and credit cards. Merrill's integrated platform for your banking and brokerage needs offers seamless account management, particularly for customers participating in its Preferred Rewards program. One of my favorite features is the ease with which you can move funds between your bank and brokerage accounts.

Preferred Deposits: For those interested in higher returns on their cash holdings, Merrill Edge Preferred Deposits require a minimum initial deposit of $100,000 and offer variable interest rates, which are typically much higher than what you'd find in standard cash sweep accounts. As of February 4th, 2025, the Preferred Deposit rate was 3.67%, significantly higher than the 0.01% offered for cash sweep accounts with balances under $1 million. However, it's important to note that funds in your Preferred Deposit account must be manually deposited and withdrawn in increments of $1,000, and they won’t be automatically withdrawn to cover trades or margin requirements.

Trading platforms: Merrill also excels as an online brokerage platform, offering no account minimums and $0 commission stock and ETF trades. Trades gain access to Merrill Lynch’s research tools, which are great for beginner investors and those managing a combination of banking and brokerage needs. Merrill Edge’s platform features tools like Stock Story, Fund Story, and Portfolio Story to simplify investing. While Merrill doesn't offer fractional shares or paper trading, it remains one of my top choices for new investors and those looking for a low-cost, well-supported trading environment. Check out my Merrill Edge review to learn more.

Bank of America Preferred Rewards tiers

Merrill Edge Preferred Rewards Gold benefits summary

Merrill Edge Preferred Rewards Platinum benefits summary

Merrill Edge Preferred Rewards Platinum Honors benefits summary

Merrill Edge Preferred Rewards Diamond benefits summary

Merrill Edge broker research

Merrill Edge Dynamic Insights account dashboard

Merrill Edge research Stock Story company revenue

Merrill Edge website Fund Story SPY ETF ticker overview

Merrill Edge website Fund Story SPY portfolio holding allocation

Merrill Edge website Idea Builder tool home screen

Merrill Edge website Idea Builder themes

Merrill Edge website Idea Builder ESG results

Merrill Edge website fixed income research

Merrill Edge website technical trading ideas

Best financial planning tool - J.P. Morgan Self-Directed Investing (Chase Bank)

Company	Minimum Deposit	Stock Trades	Options (Per Contract)
J.P. Morgan Self-Directed Investing	$0.00	$0.00	$0.65

J.P. Morgan Self-Directed Investing provides a comprehensive, user-friendly platform that simplifies money and asset management for Chase Bank customers, the largest bank in the U.S. Customers enjoy benefits like instant transfers, mobile check deposit, universal login, and access to high-quality J.P. Morgan proprietary research. The platform's Wealth Plan feature helps clients prioritize financial goals, create budgets, and design investment strategies. With no minimum deposit and $0 commissions for stock and ETF trades, J.P. Morgan is a convenient choice for casual investors and beginner stock traders.

Robo-advisor services: For traders who prefer a hands-off approach, J.P. Morgan offers Automated Investing, a robo-advisor service that manages money based on individual goals for a low fee. This service requires a $500 minimum deposit (unlike the broker's Self-Directed offering, which has no minimum requirement).

Trading platforms:All that said, the broker's platform is fairly basic and lacks the advanced features favored by active traders and experienced investors. While J.P. Morgan excels at integrating banking and investing with ease, its website and mobile trading app may frustrate those looking for more sophisticated tools or a downloadable trading platform. Serious investors may find more robust offerings at other firms, such as Merrill Edge, which provides additional research tools and more customization for traders.

While convenient for Chase Bank customers, investors who prioritize more advanced features may need to explore competitors like Merrill Edge for a broader range of tools. Read my J.P. Morgan Review to learn more.

J.P. Morgan broker research

J. P. Morgan Self-Directed website watch list

J. P. Morgan Self-Directed website stock quote

J. P. Morgan Self-Directed website fundamentals and news

J. P. Morgan Self-Directed website stock chart

J. P. Morgan Self-Directed website ETF quote

J. P. Morgan Self-Directed website markets summary

J. P. Morgan Self-Directed website more markets summary

Best for beginner investors - Ally Invest (Ally Bank)

Company	Minimum Deposit	Stock Trades	Options (Per Contract)
Ally Invest	$0.00	$0.00	$0.50

Ally Invest delivers a robust banking and brokerage combination, offering universal account access and the ability to transfer funds instantly between accounts. Investors benefit from $0 commissions on no-load mutual funds and access to a broad range of bonds, backed by detailed muni bond research (though I feel that a bond ladder tool would really enhance the broker's bond trading experience). Ally’s personal wealth management services – available for clients with $100,000 in assets at a 0.85% annual fee – also add significant value.

Trading platforms: That said, Ally’s trading tools don’t quite match the advanced features offered by brokers like Interactive Brokers or tastytrade. The absence of crypto, futures, or forex trading might deter some investors. Despite these limitations, Ally Invest’s platform is highly user-friendly for beginner investors. Learn more by reading my Ally Invest review.

Ally Invest broker research

Bank Broker Pricing and Features Comparison

Here's a pricing and features comparison of the best bank brokers side by side. To compare brokers in other areas, see our online brokerage comparison tool.

Feature	Merrill Edge	J.P. Morgan Self-Directed Investing	Ally Invest	SoFi Invest®	Fidelity
Minimum Deposit info	$0.00	$0.00	$0.00	$0.00	$0.00
Stock Trades info	$0.00	$0.00	$0.00	$0.00	$0.00
ETF Trade Fee info	$0.00	$0.00	$0.00	$0.00	$0.00
Mutual Fund Trade Fee info	Varies info	$0	$0.00	$0	Varies info
Options (Per Contract) info	$0.65	$0.65	$0.50	$0.00	$0.65
Futures (Per Contract) info	(Not offered)	(Not offered)	(Not offered)	$0.00	(Not offered)
Broker Assisted Trade Fee info	$29.95	Varies	$20	N/A	$32.95

Here is a comparison of the various banking products each broker offers.

Feature	Merrill Edge	J.P. Morgan Self-Directed Investing	Ally Invest	SoFi Invest®	Fidelity
Bank (Member FDIC) info	Yes	Yes	Yes	Yes	No
Checking Accounts info	Yes	Yes	Yes	Yes	No
Savings Accounts info	Yes	Yes	Yes	Yes	No
Credit Cards info	Yes	Yes	Yes	Yes	Yes
Debit Cards info	Yes	Yes	Yes	Yes	Yes
Mortgage Loans info	Yes	Yes	Yes	Yes	Yes