Roth IRA vs. Brokerage Account: Whats the Difference? [Video]

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.January is a great time to start working toward your financial goals. If you’re looking to start investing, the first step is to open an investment account. But which kind of account is right for you?Roth IRAs have tax advantages that make them useful for long-term savings goals such as retirement or, in certain cases, first-time home purchases. Brokerage accounts have fewer rules and more flexibility around when and why you can withdraw profits from them.Here’s a breakdown of the differences between the two.Roth IRAs vs. brokerage accounts: the major differencesThere are big differences between Roth IRAs and brokerage accounts in terms of eligibility, investment selection and the tax treatment of earnings withdrawals.Income …