A house account is an account created by a brokerage to manage its own investments or a brokerage account managed by a senior executive. It can also refer to how an account is managed in non-financial markets. The term can also be used in other industries to indicate an account handled by the head office management team. Some banks use the term to refer to a money market account for homeowners.
A house account is most commonly an account created by a brokerage to manage its own investments. The term can also be used to refer to a brokerage account managed at the company’s main office by a senior executive, or in non-financial markets to refer to the way an account is managed. A brokerage is a company that acts as an intermediary between buyers and sellers. In finance, this typically involves buying and selling securities on behalf of a client. In most cases, a brokerage simply carries out a client’s instructions rather than providing advice or deciding how to invest their money.
A brokerage firm may decide to invest its own earnings in a financial market. When this happens, it will usually seem silly to go through another broker and pay those fees. Instead, the company will use its own people and technology to buy and sell securities on its own behalf. For administrative purposes, these transactions will take place in a separate account known as the house account.
In a broader context, a proprietary account can exist in any industry with sales representatives and customers. Used in this way, the term indicates that an account is considered important enough to be handled by the head office management team rather than the sales representative. This is often the case with long-term clients or those personally known to the management staff. Sales reps don’t like house accounts since they don’t earn commission on them.
It is also possible for this type of house account to exist with a brokerage. In this context, the distinction is not between management and the sales representative because a brokerage sales representative rarely has any input after attracting a client. Instead, the distinction is between an ordinary account where transactions can be carried out by relatively junior staff at a branch, and a house account that is held in the main office and usually supervised by senior staff or even a business executive. the company.
The term home account is also used by some banks to indicate a money market account created specifically for homeowners to use for household expenses. The idea is to be able to earn interest while still making enough withdrawals to pay your household bills. This is useful in countries where standard checking accounts do not pay interest. Using the term house account in this way is usually a purely marketing activity with no legal significance.
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