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. 401(k) Plan

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

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

    An arrangement between an investor and a licensed brokerage firm ...
  5. Speculative Risk

    A category of risk that, when undertaken, results in an uncertain ...
  6. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
Related Articles
  1. An Introduction To The Roth 401(k)
    Retirement

    An Introduction To The Roth 401(k)

  2. Who bears the investment risk in 401(k) ...
    Retirement

    Who bears the investment risk in 401(k) ...

  3. The 401(k) and Qualified Plans Tutorial
    Taxes

    The 401(k) and Qualified Plans Tutorial

  4. Top Financial Frights: Emergencies & ...
    Investing Basics

    Top Financial Frights: Emergencies & ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center