A brokerage statement is a periodic document your brokerage firm sends that summarizes what happened in your investment account during a set period: your holdings, your trades, your cash balance, and any dividends or interest you received. Federal rules require firms to send one at least once every calendar quarter for any account that held a security position, carried a cash balance, or had activity during that period.1FINRA.org. 2231 Customer Account Statements Many firms send monthly statements when there’s frequent trading, but that’s a firm-level practice, not a federal minimum. Accounts carried on a delivery-versus-payment or receive-versus-payment basis are generally exempt from the quarterly requirement.
The statement is your primary record for tracking performance, catching errors, and preparing your tax return. Read carefully, it tells you whether your trades were executed as instructed, whether income you expected actually landed, and whether your account balance matches what you think you own.
What’s on the Statement
Every brokerage statement opens with an account summary showing the opening and closing balances for the period. Federal rules require those balances to appear prominently on the front page, along with the identity of the clearing firm if it’s different from your broker, and customer service contact information.2U.S. Securities and Exchange Commission. Notice of Filing of a Proposed Rule Change to Amend FINRA Rule 2231 Customer Account Statements Your account number appears here too, so you can reference it if you need to call.
Below the summary sits a list of your current holdings: individual stocks, bonds, mutual funds, ETFs, and other securities, typically with each position’s market value and the number of shares or units you own.1FINRA.org. 2231 Customer Account Statements
The transaction history section logs every buy, sell, transfer, or other activity during the period, including the execution date and the price per share or unit. Dividends and interest are itemized separately, showing the security that paid them and the date the money hit your cash balance. This is where you confirm your trades were executed as instructed and your income was credited correctly.
Your statement must also disclose that the clearing firm handling your account is a member of the Securities Investor Protection Corporation.2U.S. Securities and Exchange Commission. Notice of Filing of a Proposed Rule Change to Amend FINRA Rule 2231 Customer Account Statements SIPC protects your account if the firm fails financially, covering up to $500,000 in missing securities and cash, with a $250,000 limit on the cash portion.3SIPC. What SIPC Protects It does not cover losses from market declines. It only covers assets that disappear because a firm goes under.
If You Trade on Margin
If you borrow from your broker to buy securities, your statement has to include extra disclosures required by federal securities rules.4eCFR. 17 CFR 240.10b-16 Disclosure of Credit Terms in Margin Transactions Three things to look for:
- Your debit balance at the start and end of the period, every debit and credit entry, and the average debit balance (or each balance) on which interest was calculated.
- Total interest charged for the period, broken out by the dates each interest period ran, the annual rate applied, and the charge for each rate. Any other fees tied to the credit appear here too.
- A description of the lien your broker holds in securities used as collateral, and the conditions under which the firm can demand more.
If none of that applies to you, these sections won’t appear.
What the Statement Tells You at Tax Time
Your statement tracks the data behind your investment income, most importantly the record of realized gains and losses: the difference between what you paid for a security (your cost basis) and what you received when you sold it.5Internal Revenue Service. Topic No. 409, Capital Gains and Losses It also tracks how long you held each security you sold, which controls how the gain is taxed. If you held for one year or less, the gain is taxed at your ordinary income tax rate. Hold longer than a year and a lower capital gains rate may apply. Short-term and long-term transactions are reported separately on Schedule D of your federal return.6Internal Revenue Service. 2025 Instructions for Schedule D Form 1040
Your monthly or quarterly statements are your running record, but the official tax documents come separately. Your broker must send Form 1099-B (proceeds from sales) and Form 1099-DIV (dividend income) by February 15 of the year after the tax year.7Internal Revenue Service. Instructions for Form 1099-B Those forms are what you use to complete Schedule D.
How Long to Keep Your Statements
The IRS generally requires you to keep tax-related records for three years from the date you filed your return. Investment records follow a longer timeline, though, because you need your original cost basis to calculate gains when you eventually sell. The IRS advises keeping records related to property, including investments, until the statute of limitations expires for the year you dispose of it.8Internal Revenue Service. How Long Should I Keep Records In practice: hold purchase records as long as you own the investment, plus at least three more years after selling.
Two situations stretch that further. If you claim a loss from a worthless security, keep the records seven years. And if you fail to report income exceeding 25 percent of the gross income shown on your return, the IRS can look back six years.
Your broker has its own retention duties. Federal regulations require firms to preserve customer account statements for at least three years, with the first two in an easily accessible location. Records relating to the opening and maintenance of your account must be kept at least six years after the account is closed.9eCFR. 17 CFR 240.17a-4 Records to Be Preserved by Certain Exchange Members, Brokers and Dealers
How to Get Your Statements
Most firms deliver statements through a secure online portal, usually under a “Documents” or “Statements” tab after you log in. You pick a date range (monthly, quarterly, or annual) and download or print a PDF. Most portals require multi-factor authentication on top of your username and password.
FINRA’s Board has approved letting firms make electronic delivery the default for required communications, as long as they give you notice and the chance to choose paper instead.10FINRA.org. Facilitating E-Delivery While Preserving Investor Choice You can revoke consent at any time and go back to paper.11U.S. Securities and Exchange Commission. Use of Electronic Media Some firms charge for paper delivery, often around $5 per mailing, while electronic statements are typically free.
If you’d rather deal with a person, call the customer service number on your last correspondence. A representative can mail a statement to your address on file after verifying your identity, so keep your account number handy.
If Something on the Statement Looks Wrong
Every statement has to carry a notice telling you to report any inaccuracy or discrepancy promptly.1FINRA.org. 2231 Customer Account Statements If you see an unfamiliar transaction, a missing dividend, or a wrong balance:
- Contact your broker right away and question any transaction you didn’t authorize or don’t understand.
- If the response isn’t satisfactory, escalate to the firm’s branch manager or compliance department.
- Put it in writing. If you lost money or see an unauthorized trade, submit a written complaint and keep copies. Confirm any phone conversation in writing to protect your rights under the Securities Investor Protection Act.
If the firm won’t resolve it, you can file a complaint with FINRA’s Investor Complaint Center.12FINRA.org. File a Complaint FINRA also runs two formal dispute paths. Arbitration works like a streamlined court process: FINRA member firms are required to participate, and independent arbitrators issue a binding decision. Mediation is voluntary, uses a neutral mediator to help both sides negotiate a settlement, and requires everyone to agree to take part.13FINRA.org. Arbitration and Mediation
What Happens If You Ignore Your Statements
If you stop reviewing statements and lose contact with your firm, the account can eventually be classified as dormant. After a stretch of inactivity, typically three to five years depending on your state, the firm may be required to turn your assets over to the state as unclaimed property through a process called escheatment.14FINRA.org. Avoiding and Recovering Unclaimed Investment Assets You can usually reclaim the money through the state’s unclaimed property office, but the process takes time, and your investments may have been liquidated by then. Reviewing your statements and responding when your broker reaches out is the simplest way to keep the account active.