What Is a Brokerage Statement and What Does It Show?

A brokerage statement provides a detailed summary of an investor’s account holdings and all transactions over a specific period. This document offers transparency and oversight, helping individuals stay informed about their financial standing.

What a Brokerage Statement Is

A brokerage statement is a periodic report issued by a brokerage firm to its clients, typically on a monthly or quarterly basis. It provides a comprehensive summary of all activity within an investment account during the specified period, encompassing holdings, transactions, and cash balances. This document acts as a master record for the account, unlike a trade confirmation which details only a single transaction, or tax forms that summarize annual tax-relevant data. Brokerage firms are generally required to issue these statements at least quarterly, with more frequent statements often provided for accounts with active trading.

Key Information Found on a Brokerage Statement

Brokerage statements contain several sections detailing an investor’s financial activity and holdings. The account summary provides essential identifying information, such as the account number, account holder’s name, and the specific period the statement covers. It often includes an overview of the account’s total value and performance during the statement period.

The holdings or positions section lists all securities owned within the account, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). For each security, it typically shows the number of shares or units held, the current market value, and sometimes the cost basis, which is the original price paid for the asset. This section allows investors to verify the accuracy of their investments.

A detailed transaction history records all activities that occurred during the statement period. This includes purchases and sales of securities, dividends received, interest earned, and any transfers of funds into or out of the account. Reviewing this section helps confirm that all expected transactions were executed correctly and recorded accurately.

The cash balances section indicates the amount of available cash in the account, which might include funds held in a money market account. Some statements also include a summary of account performance, showing the growth or decline of investments over the period or year-to-date. This can help assess the effectiveness of an investment strategy.

Fees and commissions are also itemized on the statement, detailing charges incurred for trades, account maintenance, or other services. These can include flat fees for trades, percentage-based fees for managed assets, mutual fund expense ratios, and sales loads. If applicable, information regarding margin accounts, including borrowed funds against securities and interest charged on those loans, will also be present.

Accessing Your Brokerage Statement

Brokerage firms offer multiple methods for statement delivery. Many investors receive statements via postal mail, but electronic delivery through online portals is a prevalent option. Opting for electronic statements often reduces paper clutter and provides immediate access.

To access statements online, investors generally log into their brokerage firm’s website or mobile application. Within the online platform, statements are usually found under sections labeled “Documents,” “Statements,” “Account Activity,” or “Reports”. Most firms allow access to past statements, which can be viewed, downloaded as a PDF, or printed for personal records. Investors can usually set preferences within their account settings to choose between electronic or paper statement delivery.

Why Brokerage Statements are Important

Regularly reviewing brokerage statements is important for effective financial management. These statements serve as a tool for tracking investment performance, allowing investors to monitor the growth or decline of their portfolio over time and assess whether their investments align with their financial objectives. This oversight helps in making informed decisions about portfolio adjustments or rebalancing.

Brokerage statements also play a role in tax preparation, providing data necessary for reporting investment income to the Internal Revenue Service (IRS). While the statement itself is not a tax form, it contains information that supports the completion of IRS Forms 1099-INT for interest income, 1099-DIV for dividends, and 1099-B for capital gains and losses from securities sales. Brokerage firms typically issue consolidated 1099 forms that combine these details annually.

Monitoring account activity through statements helps identify unauthorized transactions, errors, or unexpected fees. Discrepancies, such as unauthorized trades or unfamiliar charges, should be promptly reported to the brokerage firm. This vigilance helps safeguard investments and ensures the accuracy of financial records. The information within these statements also supports financial planning by allowing investors to gauge progress toward their goals.