Brokerage Window

AAA

DEFINITION of 'Brokerage Window'

The ability to direct trading within a brokerage's offering through a retirement plan such as a 401(k). As opposed to being limited to the investment options within a sponsored 401(k), some investors have the option to set up a "window", which allows them to trade most listed stocks, mutual funds and exchange-traded funds.

May also be known as a "self-directed account" (SDA) or "self-directed brokerage account" (SDBA).


INVESTOPEDIA EXPLAINS 'Brokerage Window'

The brokerage window is a relatively new convention, but it is quickly gaining popularity as more companies give the option to their employees. While the freedoms of a brokerage window are too much for some investors to consider, it is a viable option for those who understand the increased risks of individual security selection and asset allocation.


RELATED TERMS
  1. Systematic Risk

    The risk inherent to the entire market or entire market segment. ...
  2. Speculative Risk

    A category of risk that, when undertaken, results in an uncertain ...
  3. 401(k) Plan

    A qualified plan established by employers to which eligible employees ...
  4. Tax Deferred

    Investment earnings such as interest, dividends or capital gains ...
  5. Brokerage Account

    An arrangement between an investor and a licensed brokerage firm ...
  6. Catastrophe Equity Put (CatEPut)

    Catastrophe equity puts are used to ensure that insurance companies ...
RELATED FAQS
  1. Who bears the investment risk in 401(k) plans?

    Who actually bears the investment risk in a pension plan depends on the type of pension plan that is employed. In a broad ... Read Full Answer >>
Related Articles
  1. Retirement

    An Introduction To The Roth 401(k)

    The money that you earn today is taxed today, making tax-free retirement withdrawals a reality.
  2. Taxes

    The 401(k) and Qualified Plans Tutorial

    Learn about eligibility requirements, contribution to and distribution rules for these retirement plans.
  3. Professionals

    Tips for Gen X Savers at Age 50

    This is the time to stop and take a careful assessment of where Gen X savers are and see what changes they need to make to achieve their financial goals.
  4. Retirement

    Which Assets Can You Hold In Your IRA?

    You're not allowed to hold every kind of asset in an IRA. What can you include – and which ones are banned?
  5. Investing

    Rethinking About Retirement Investing?

    There are plenty of reasons to rethink your retirement investing, wherever you fall on the spectrum between fatalistic acceptance and cheerful confidence.
  6. Professionals

    Who Wants to be a 401(k) Millionaire?

    Want to be a 401(k) millionaire? Here are some tips to get you on the right path.
  7. Professionals

    The Pros and Cons of 401(k) Loans

    A look at the pros and cons of 401(k) loans.
  8. Professionals

    Are Longevity Annuities in 401(k)s a Good Idea?

    An in depth look at the arrival of longevity annuities in 401(k)s and IRAs.
  9. Professionals

    Should Investors Nix Actively Managed Funds?

    Index fund returns are on a tear but does this mean investors should nix actively managed funds?
  10. Retirement

    How To Move From Nest Egg To Income?

    Income vs. a nest egg is closely tied to what most of us are ultimately interested in for retirement – maintaining our standard of living and to travel.

You May Also Like

Hot Definitions
  1. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  3. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  4. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  5. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
  6. Currency Carry Trade

    A strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase ...
Trading Center