Federal law states that margin requirement for an account is the greater of 25% equity or $2,000, however most firms require the greater of 30% minimum equity and $3,000. Anything less than $3,000 ;or 30% equity would generate a house call while anything less than $2,000 would general a federal maintainence call.
You're sitting at $2500 which is too close to the miniumum federal requiement, no reputable firm should approve your account for margin.
After 6-9 years of experience and having "investment knowledge" of a "professional trader' you should know the basic margin requirements.
I would never approve this account for margin and if any one in my margin department did approve such an account they would be working elesewhere.
Almost every one gave you good responses, so I'm going to add my two cents
Don't lie when you're applying for margin with a brokerage firm, although most margin people did not go to an Ivy league shcool (Most do not have a degree) but they are not stupid.
You have net worth of 15,000-50,000 and LIQUID NW of 50,000 - 100,000 this does not compute
6-9 years as a professional trader and yu don't understand margins!!
Professional tader with annual income of 25,000-50,000 in a big moving market
Only $2,500 in investing capital with liquid net worth of $100,000
Your basic account if close to having a Federal Maintenance call assuming you don't trade.
It seems all that responded are familiar with the procees, it a shame you're not
Your account is tiny and the application has obvious inconsistencies.
liquid net worth > net worth
Small income & net worth is not logical for a "professional trader"
Speculative is not consistent with a 7-9 year time horizon.
I think they are doing you a huge favor by rejecting you. Everything I see indicates an inexperienced novice looking for a way to gamble rather than invest, and that is almost always a recipe for disaster.
you are a professional trader with an account size of $2500????
when applying for margin, you are really applying for a loan or line of credit. By your own admission you are looking to invest in vehicles that are very dicey....where are your assets to back up your taste for speculative plays....certainly not in your account.
a note: when i applied for margin, i was shocked that they checked my checking and savings accounts. there was an inquiry done from them in my chex report.
i wonder if they can see your balances or your direct deposits, etc.
also, you sound like you are self employed (varying income),,, a risk.
to add: i think my broker charged 9% for margin,,, i never touched it,,, only wanted it in case of emergencies.
insane to pay 9% interest. insane.
It has been my 3rd reapplication and i am now asked to wait for another 90 days to reapply, do i really need to wait that long? How exactly do i get the Tier 2 margin account? I filled my margin/option upgrade form as
annual income 25000 - 49999
approximate net worth 15000 -49999
approximate liquid net worth 50000 - 99999
Years of investment experience - 6 - 9 years
Investment knowledge - profesional trader
Types of transaction - options, stocks
Options Investment Objectives - speculation
Under the website Investment Profile, i have also changed it to:-
Risk tolerance - speculative
Primary investment objective - aggressive growth
Secondary investment objective - aggressive growth
investment time horizon - 7 - 9 years
I do have a small account less than $2500
Someone who is familiar with the process please help out?
