Active account

Active account

Refers to a brokerage account in which many transactions occur. Brokerage firms may levy a fee if an account generates an inadequate level of activity.

Active Account

A brokerage account on which trades occur regularly. Active account holders generally do not have a buy and hold investment strategy; rather, they seek to profit from small changes in the prices of securities and high trading volume. Some brokerages charge a fee for managing active accounts, as doing so is more work for the broker(s) involved.