An investment account is kept with financial institutions such as banks, brokerage houses or even insurance companies. The main purpose of this account is to maintain and grow capital as well as fixed income profits through long-term deposits in the asset portfolio.

In general, "investing" means the proactive use of assets in a very broad definition - such as patents, trademarks, rare wines or gold coins, but also small businesses, real estate and antiques. In that regard, the investment account contains fewer physical assets: cash, stocks, bonds, and mutual funds. Meanwhile, the basic investment objective remains unchanged - to buy the asset and hold it for the long term and sell it at a later point in time when the asset is cheaper. Depending on the asset you have decided on, you will need to evaluate your investment as a long term process as you will have to wait for the particular property to grow in value.

Features of the investment account
Before opening an investment account, you should check whether or not this type of financial service is best suited for your risk / return. In addition, liquidity preferences embody your goal. Investment accounts are typically operated with long-term goals. Traditionally, a long term is considered to be 7 years or more, but this number should not be the main determinant in deciding whether or not to open an investment account. This banking service is often used when there is a certain event happening in your life that requires higher income, such as

Since one of the main determinants of the investment account is its long-term nature, you should be ready to face another characteristic - liquidity. Each financial instrument has less liquidity compared to cash in your checking or savings account. In addition, this type of deposit usually comes with higher transaction costs in case you want to access the funds earlier than a specific time set in the agreement between you and the financial institution.

Types of investment accounts
Once you have decided to open an investment account, the next step is to find a bank or other financial institution that can offer you the most suitable investment account in terms of costs, risk level and other components. There are different types of accounts to suit different investor needs and wants, but not all banks offer such services.

Brokerage account
This account is managed by the investor himself. Usually, after depositing cash into this account, you can use the funds to purchase various financial instruments or other types of investments. This account includes a commission that is paid to your broker for the execution of your buy and sell orders. If you are unsure about your investment skills, you can take advantage of a full service brokerage account that also includes investment advice.

Retirement account
This account is designed for long-term, continuous deposits over the years of employment, which in addition to the statutory pension (if applicable in your country - ask us) leads to a higher income in retirement. In some countries, deposits in the retirement account are not taxable.

Deposit / guardianship account
These accounts are intended for investors who want to save money for their children or other people. This includes savings for a child's education.

Special account
This type of account usually includes testamentary or non-testamentary trust accounts. A non-will escrow account registers financial instruments on behalf of the trust while they are administered by a trustee. In the meantime, a testamentary trust is opened through the testimony of a deceased person.

Business account
The business account works similarly to the broker account, with the customer being a company and not a private person.

Account opening services
The Confidus Solutions team of highly qualified bank agents and financial experts will advise you in detail on different types of bank accounts in order to offer you the most efficient solution. Our agents deal with a number of global banks and financial institutions, offering a wide variety of solutions. Contact us and we will review your case, provide you with the list of documents required to open an investment bank account and guide you through the entire process, including negotiations with the bank.

Advantages disadvantages of the investment account
As mentioned earlier, it is very important to determine the main reasons for opening an investment account or any other type of account. When comparing it to a savings account, it must be taken into account that the deposited funds are not easily accessible and the process is more time consuming.

While your investment account has the potential for high returns if invested correctly, the risk of losing some or all of your money if invested incorrectly should be considered.