The primary distinction between a brokerage account and an IRA is the purpose for which the account is opened. A brokerage account is a type of investment account that allows investors to purchase financial products like stocks, bonds, and mutual funds. You can invest in both short-term and long-term investments, but you won't benefit from the tax advantages that an IRA provides.
An IRA, on the other hand, is a tax-advantaged retirement savings account that allows investors to save a portion of their earnings for retirement. The money grows tax-deferred, which means you won't have to pay taxes when you contribute to the account, but you will have to pay income taxes when you withdraw it in retirement. In general, IRAs are best suited for long-term goals.