What type of account allows a customer to select one member firm for custody of assets?

A prime account allows a customer to select a single member firm for the custody of their assets while potentially executing trades through multiple brokerage firms. This type of account is beneficial for investors who wish to maintain their assets with one trusted firm while having the flexibility to work with various trading platforms or brokers for execution.

In a prime account, the prime broker provides various services such as clearing and settlement, margin financing, and often access to lending or other financial services. This arrangement is particularly common among institutional investors, hedge funds, and high-net-worth individuals who manage complex portfolios and require tailored services from their custodial firm.

The other types of accounts mentioned serve different purposes: a self-directed account allows investors to make their own investment decisions without advising from a broker; a retirement account is designed to provide tax advantages for retirement savings; and a joint account is established by two or more individuals to hold assets in a shared capacity. None of these provide the specific service of selecting one member firm for asset custody in the same manner as a prime account.