---
title: "Short 10 - V1"
url: https://stacklist.com/card/f8cd146a-4e4b-4d08-8076-afc5a1105416
stack: https://stacklist.com/stack/052375be-d16e-4ba2-bf89-29ac1a528507
summary: "This video explains the types of brokerage accounts needed for trading, including cash accounts, self-managed IRAs, and Roth IRAs, and discusses the role of custodians in overseeing self-directed accounts. It highlights common mistakes people make when opening trading accounts and the differences between account types."
tags: "brokerage, trading, retirement-accounts, ira, investment-accounts, self-directed"
key_entities: "Schwab (technology), Thinkorswim (technology), TradeStation (technology), Fidelity (technology), Interactive Brokers (technology), Individual Retirement Account (concept), Roth IRA (concept), Self-directed account (concept), Custodian (concept)"
classification: "video"
acp_version: "0.2"
token_counts_approximate: 213
visibility: public
agent_accessible: true
status: "final"
---

# Short 10 - V1

[00:00] you have to have a brokerage account. And typical brokers are Schwab, Thinkorswim, TradeStation, Fidelity, Interactive Brokers, doesn't matter. And within that account, either you have pure cash, or you have your self-managed IRA, individual retirement account, or you have an individual retirement account, but it's a Roth. So all the dollars that build in the Roth are non-taxable as you grow your account. But those are self-directed accounts, so you have to have something called a custodian, and the custodian oversees the account while you are managing the account. It's just one of those legal things. If you have pure cash and you're just putting cash in to that account to trade with, then it doesn't matter. You don't need a custodian, and it just works great. Most people open the wrong kind of account and don't find out for years.