Overview
Margin accounts are investment accounts that let you borrow funds from your brokerage. The brokerage uses the assets in the account as collateral for the loan and you pay interest on the amount borrowed. The amount borrowed is represented as a negative debit (cash) balance in your account.
Margin amplifies your buying power, allowing you to invest more than you could on your own and potentially earn greater returns. However, trading on margin can also amplify your losses and you can end up losing more than your initial investment.
You can withdraw your margin available balance as cash. This will increase your margin used balance on which interest charges will apply.
Money movement and feature limitations
- Withdrawing on margin is rolling out to clients. It'll be available for everyone soon.
- You can initiate share transfers from non-registered accounts into Margin accounts.
- You can't initiate share transfers out of Margin accounts.
- To transfer funds from your Margin account to another Wealthsimple account, contact our client support team.
- Extended hours trading is available in Margin accounts. Please be aware that it carries additional risks. Learn more: Extended Hours Trading Disclosure.
- The following features aren't available:
- Stock lending
- Recurring investments
Eligibility criteria
To assess if a margin account is appropriate for you, we'll ask you about your current financial situation. If you're approved, you can continue to open a non-registered margin account.
If your application is rejected
We'll let you know during the onboarding process if you're not approved for a Margin account. If you're not approved, we can't do anything to change this.
Margin trading is not for everyone. If your account is rejected, it is likely because the financial information you provided is not appropriate for margin trading. You can open a non-margin non-registered account instead.
How to open a Non-registered margin account
You can only open a Margin account on the Wealthsimple website.
Follow these steps to open a margin account:
- Sign in to the Wealthsimple app on your mobile device
- From the Home tab, scroll down and tap + Add an account
- Select Open a new account
- Tap Non-registered from the options
- Tap Margin trading
- Follow the prompts to open a Non-registered margin account
- Log in to your Wealthsimple account
- Select + Add an account from the Home page
- Select the Investing tab
- Choose Non-registered margin from the options
- Under what to invest in, select Self-directed margin account
- Follow the prompts to confirm your information
- Review the Agreement details, then select Confirm
- Read the Margin Trading Risk Disclosure, then select Confirm
- We'll approve or reject your application
- If it's approved, then your account is open and you can make a deposit
Learn more about the Wealthsimple Margin account
Check out the articles below:
- Key concepts and terms in a Margin account
- Learn about fees and interest in your Margin account
- Understand margin calls
- Trade options in your Margin account
Frequently asked questions
How do I buy a stock or ETF in my Margin account?
You can follow these steps to buy a stock or ETF, but we recommend reviewing the margin-specific information below first:
- Buying power is the total purchasing power in your account (in other words, the funds available to purchase securities). This is represented as Margin available.
- If the order cost exceeds the available cash in the account you will borrow the remaining balance from Wealthsimple (you will trade on margin).
- You can choose to continue with the purchase using margin or modify the order. If you have cash available in another currency, you can convert it to reduce the margin used.
Can I transfer shares from another Wealthsimple account into my Margin account?
Yes. Learn more about transferring shares into your Margin account:
Can I transfer a margin account with another institution into my Wealthsimple Margin account?
Yes. Make sure the destination account you select is your margin account, and not a non-registered account.
Learn more about institutional transfers:
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