Thursday, February 2nd, 2017

Is it possible to get a loan for a stock trading account?

I’m new to trading. I took a class in options trading and I mean everything I can read about trade, schedules, money management etc. I want to start with a considerable account ~ $ 20,000. 00 is not eliminated so quickly while I’m doing a feeling for the market. Can I get a loan for these purposes? Since trading of the shares can be considered a business does anyone know if there is a small commercial loan for the purpose of trading. Any help would be helpful. I know I will be able to perform well in the market. But it is difficult to save a considerable trading account if you have bills, mortgages, etc. Thanks

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4 Responses to “Is it possible to get a loan for a stock trading account?”
  1. BangkokBob says:

    No, you can not borrow money to trade in the markets. However, if you tell the bank or any other lender that you want a home loan, then use the money for trading, they really will not know.

    Also once you have a fully paid account with a brokerage account, lets say $100,000 worth of stock, you can then borrow 50%, of that value, or in this case $50,000 and use that money for trading options. This is called margin trading and can be risky. The 50% that you borrow, must be paid back either with cash or by selling the stocks in your portfolo.

  2. big one says:

    I would say..Don’t Do It !!! By taking a loan, you are already down the interest you will have to pay back. And if the market goes flat and you take losses, then you will being paying back a loan for nothing. Never invest on a loan.

    I know you don’t want to hear that, but it makes no finacial sense at all. Get a second job and invest your earnings. If you have a 401 K plan at work and it matches your contributions, use that first (that’s a 100% return right there) there are plenty of ways to do this without taking a loan.

  3. InvisibleWar says:

    Take out a home equity line of credit. If it costs you 7% and you can make 15%, then you are ahead 8%. Just tell the bank you want to make home improvements. Then, just write checks to yourself and forward the money to your brokeage account.

  4. JSan521704 says:

    It’s called buying and selling on Margin but it’s quite risky.

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