We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is an Active Account?

By Dana DeCecco
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

An active account refers to an open account with frequent transactions. The primary usage of the term refers to brokerage accounts. Active account status might also be associated with checking or charge accounts that have regular transactions. Activity in an open account generally results in revenue for the provider.

Online brokerage accounts require activity for the broker to earn revenue. This is accomplished by the account holder making trades. Brokers earn revenue by charging commission fees on a per-trade basis. The broker's main concern is promoting a large volume of trades. Some brokers charge an inactivity fee, because an inactive account provides no income for the broker.

Brokers might offer incentives to account holders who have elevated activity. Reduced commission fees are a typical incentive for increased activity. Free trades and assorted gifts are offered by some brokers. These incentives are often offered to traders opening a new account. Account referrals might be another popular incentive offered by brokers.

Many financial brokers concentrate on educational resources as an incentive to account holders. The reasoning is that an educated trader is more likely to be a productive trader. An educated trader will feel more confident and naturally will produce more trades and more commissions for the broker. These resources work to the advantage of the broker and the trader.

Brokers might provide software programs for a trader who has an active account. Advanced charting programs might be an enticing feature for the active trader. Good charting programs lead to technical analysis skills. These skills might lead to trading systems and procedures that generate volume trades for the broker. Some programs might include proprietary technical indicators.

Many brokers will provide whatever it takes to motivate the account holder. Special news feeds and reports might be offered for free to an account holder with a specified volume of trades. Some incentives might be quite expensive for the broker, because a third-party provider might supply the services. Overall, the volume of trade commissions are expected to cover the cost of services plus a profit for the broker. Proprietary trading systems might even be provided by some brokers.

The scope of services and incentives provided by brokers is aimed at propagating active trading accounts. It is in the broker's best interest to have active and successful account holders. The investor with an active account has access to many services and resources that can enhance and improve trading skills. Active trading accounts often prove to be a profitable enterprise for all parties involved.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.