PACT · Money & Investing · Lesson 6

Brokerages

The account that ties it all together — and what actually happens in the second after you tap "Buy."

🎓 Tap any blue underlined word for a plain-English definition.

1The account that holds everything

You've met stocks and ETFs. A brokerage is the company — and the brokerage account is the home — that holds them all in one place (bonds too, coming up next) and connects you to the market.

Think of it as the hub: your cash sits there, and from there it can become shares of a company, an ETF, or a bond. One login, everything in one spot.

2What actually happens when you tap "Buy"

It feels instant, but a little relay race happens behind the scenes. You search a ticker, pick an amount, choose a market order (buy now) or a limit order (only at your price), and confirm. Then your brokerage routes it to a stock exchange, where a seller is matched to you — and after the trade settles, the shares are officially yours.

Run the pretend order below to watch the whole relay.

📨 Follow your order

1
You tap "Buy" in your brokerage app
Pick the ticker, an amount, and an order type.
2
Your brokerage routes the order
It sends your request to a stock exchange.
3
The exchange matches you with a seller
Someone selling meets someone buying — you.
4
Shares appear in your account
Your app shows you now own them.
5
The trade settles
A day or so later it's final — officially, truly yours.

Simplified illustration of order flow — no real trade happens.

3Why most of this is free now

A decade ago every trade cost a fee, a commission. Today most big brokerages charge $0 on U.S. stocks and ETFs, which is a huge deal for someone starting with small amounts — your $10 isn't nibbled away before it's even invested.

When you pick a brokerage, the things that actually matter for a beginner: does it allow fractional shares, is it $0-commission, and (if you're under 18) does it offer a teen or custodial account — which you saw back in the Stocks lesson.

4A few beginner-friendly brokerages

Plenty of brokerages let you buy fractional shares with $0 commission. A few popular ones to look at:

These are examples to explore, not recommendations — and there are plenty more (Robinhood, SoFi, Webull, Public, and others). Always check a broker's current features and fees when you sign up, and open any account with a parent if you're under 18.

Big takeaway: a brokerage is the hub that holds all your investments — stocks, ETFs, and (up next) bonds — and for U.S. stocks and ETFs, trading is usually free.
← Lesson 5: ETFsNext → Lesson 7: Bonds
Not financial advice. This is educational content only — nothing here is a recommendation to buy or sell any specific investment. Investing involves risk, including possibly losing money, and PACT isn’t a financial advisor. If you’re under 18, open any real account together with a parent or guardian.
×