Three types of online brokerage accounts exist for customers to choose from: Cash accounts: No money is leveraged, there is often a three-day settlement period following each trade, and some asset types are limited. Margin accounts: Money can be leveraged at a ratio of 2:1 allowing investors to buy twice as many shares as they might normally be limited to. Interest is paid on any amount use over the account’s equity balance. Same-day settlement is allowed. Tax-advantaged accounts: These include individual retirement accounts (IRAs), 401(k) accounts, and other tax-advantaged accounts. Funds can be deposited, but may not be withdrawn without penalty until the investor reaches a designated age. As long as the money is in the account, it may grow tax free.