Fullmetal Trader
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Hello, I am a US stock trader and have been trading since 2009. I am relatively short funded and have traded without margin but I'm trying to obtain margin to build my account and increase the number of trading opportunities available to me. Recently my application for margin with my current brokerage (Fidelity Investments) was rejected. I was hoping someone with more experience could recommend a brokerage that might be more likely to grant me a margin account given my current circumstances?
I'm worried that multiple requests for margin through different brokerages would damage my credit and of course it takes time moving money around between brokerages to make such requests so I'm really hoping someone here will be able to advise me. FYI, I'm comfortable with my current trading approach and have no interest in trading with borrowed money but need to circumvent the T+3 rule and to be able to short stock in order to reasonably increase my profitability.
So here is my situation:
At the time of my application I held $9,500 in my account. I held $4,200 in revolving (credit card) balances out of a total of $18,200 in available credit. From wage based income I'm generating $34,000 in income annually and from that about $1,100 to $1,200 per month in available free cash flow (after expenses and taxes have been paid). My credit score is 765. I should probably add that I do not own a home. Despite having given Fidelity $600 to $800 per month in commissions in the past and having obtained a negotiated rate with them and access to all of their trading software they have still refused to grant me margin for my account. Apparently, I must be rather wealthy to pass the bar for Fidelity. What are my available options from a brokerage standpoint?
I know that I could continue to build the account and trade with cash while trading with smaller amounts to give myself more trading capacity in any given week but in doing so I'm having to lose out on any potential short trades which is a huge hit for me. And words cannot express how frustrating it is to have to sit back and watch so many profitable trades pass me by, year after year, due to the crippling combination of T+3 limitations and no short trade availability.
I am willing to pay more for commissions but require access to time and sales and Level II data. I am a discretionary, momentum trader a la Mr. Charts.
The brokerages on my current list are:
TD Ameritrade, ETrade, Scottrade, ChoiceTrade
Can anyone out there advise me regarding margin with any of these or other brokerages? Or has anyone else out there been able to obtain margin under similar circumstances?
Thanks to anyone who can help as well as to everyone else who has contributed to this forum over the years. I have been lurking here and there for some time and it truly is a gold mine.
I'm worried that multiple requests for margin through different brokerages would damage my credit and of course it takes time moving money around between brokerages to make such requests so I'm really hoping someone here will be able to advise me. FYI, I'm comfortable with my current trading approach and have no interest in trading with borrowed money but need to circumvent the T+3 rule and to be able to short stock in order to reasonably increase my profitability.
So here is my situation:
At the time of my application I held $9,500 in my account. I held $4,200 in revolving (credit card) balances out of a total of $18,200 in available credit. From wage based income I'm generating $34,000 in income annually and from that about $1,100 to $1,200 per month in available free cash flow (after expenses and taxes have been paid). My credit score is 765. I should probably add that I do not own a home. Despite having given Fidelity $600 to $800 per month in commissions in the past and having obtained a negotiated rate with them and access to all of their trading software they have still refused to grant me margin for my account. Apparently, I must be rather wealthy to pass the bar for Fidelity. What are my available options from a brokerage standpoint?
I know that I could continue to build the account and trade with cash while trading with smaller amounts to give myself more trading capacity in any given week but in doing so I'm having to lose out on any potential short trades which is a huge hit for me. And words cannot express how frustrating it is to have to sit back and watch so many profitable trades pass me by, year after year, due to the crippling combination of T+3 limitations and no short trade availability.
I am willing to pay more for commissions but require access to time and sales and Level II data. I am a discretionary, momentum trader a la Mr. Charts.
The brokerages on my current list are:
TD Ameritrade, ETrade, Scottrade, ChoiceTrade
Can anyone out there advise me regarding margin with any of these or other brokerages? Or has anyone else out there been able to obtain margin under similar circumstances?
Thanks to anyone who can help as well as to everyone else who has contributed to this forum over the years. I have been lurking here and there for some time and it truly is a gold mine.
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