Types of Accounts
Best suited to experienced investors, a margin account allows you to borrow part of the money required to pay for your purchase and, in return, you're charged daily interest.
Features & Benefits
- Increase your buying power.
- Trade options (not available for general margin accounts), stocks, mutual funds, fixed income investments and other securities on North American markets.
- There's no fee to open a margin account.
- Account can be held in joint ownership or by a corporation or investment club.
- Others may trade on your behalf, provided they have trading authority.
For most stocks and mutual funds, you can borrow up to 50% of the cost of the securities you buy, provided that the stock or unit price is more than $2. For most option eligible stocks, you can borrow up to 70% of the market value.
You may usually borrow up to $100,000 on any one security, subject to our review. Larger margin loans are available with some restrictions.
Interest rates vary depending on the amount you borrow. Interest is calculated daily and charged to your account monthly. Contact us to find out the daily interest rate.
Managing Your Account
- You cannot buy on margin when the stock price is less than $1.50 per share.
- You cannot borrow more than $100,000 without our prior approval.
- You must maintain at least $2,000 of equity value in your margin account (Equity value is the amount of cash you would have if you sold all your securities).
- You cannot buy on margin in your registered account (e.g. RRSP or RRIF).
- You cannot make additional investments while a margin call is in effect.