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Overview
A joint margin account is a shared investment account that lets you and a co-owner borrow money from us against your existing securities to increase your buying power. This means you can use your shared portfolio to potentially earn greater returns or access cash without selling your holdings. Trading on margin can also amplify your losses, and you can end up losing more than your initial investment. You can enable margin yourself in the Wealthsimple app or on the web in an existing joint non-registered account. Only the primary account holder can enable margin, and it can't be undone.
Eligibility
To enable margin on a joint account, you must meet the following requirements:
- Existing account: You must already have a joint non-registered trading account. The account has to be fully open, which means your co-owner has accepted the invitation and finished their part of opening it.
- Primary account holder: Only the primary account holder can enable margin.
- One per primary account holder: You can be the primary account holder on only one joint margin account. If you're already the primary account holder on a joint margin account, you can't enable margin on another joint non-registered account. There's no limit to how many joint margin accounts you can be a co-owner on when someone else is the primary account holder.
How to enable margin on a joint account
You can enable margin in the Wealthsimple app or on the web. Make sure your joint non-registered account is fully open first.
- Log in to the Wealthsimple app
- Go to your profile
- Tap the Settings (gear) icon
- Tap Investing
- Scroll down to the Margin section, then tap Set up on the Upgrade to margin card
- Select your joint non-registered account
- Follow the prompts and accept the margin agreements to finish enabling margin
- Log in to your Wealthsimple profile
- Select your joint non-registered account
- Select the Settings (gear) icon in the top-right corner
- Select Account settings
- In the Investing settings section, select Margin trading, then select Enable margin
- Follow the prompts to finish enabling margin
If you don't see the Upgrade to margin card in the Wealthsimple app, you don't have an account that's eligible to upgrade. Review the eligibility requirements above.
Note: After you enable margin on a joint account, you can’t turn it off or undo it. If you no longer want margin, you’ll need to close the account and open a new joint non-registered account.
Cancel while you're enabling margin
If you start enabling margin and change your mind, you can cancel before you finish. Your account stays a non-registered account, and you can enable margin later.
- Log in to the Wealthsimple app and go to your profile
- Tap the Settings (gear) icon
- Tap Investing, then scroll down to the Margin section
- Tap the X on the Continue your margin upgrade card
- Tap Cancel margin upgrade
- Log in to your Wealthsimple profile
- Select your joint non-registered account
- Select the Settings (gear) icon in the top-right corner
- Select Account settings
- In the Investing settings section, select Margin trading, then select Cancel
Important considerations
- Joint liability: Both account holders are "jointly and severally liable." This means each individual is 100% responsible for any debt in the account, regardless of who made the trade.
- Margin calls: If the value of your shared assets falls below the required maintenance level, we'll issue a margin call to both account holders. Either account holder can resolve it by depositing funds, transferring securities into the account, or selling securities.
- Interest rates: You'll pay interest on any borrowed balance. The rate depends on how much you borrow and how many US options contracts you trade, and it moves with the Wealthsimple Prime rate. The account is charged the lowest rate either account holder qualifies for, and each account holder's borrowing total includes everything borrowed in this account. Options contracts traded in the account count toward both account holders. Learn about fees and interest in a margin account.
- No new joint margin account: You can't open a joint margin account from scratch. Instead, you can enable margin on an existing joint non-registered account.
Frequently asked questions
Am I responsible for margin debt my co-owner takes on?
Yes. Each account holder is fully responsible for the total debt in the account.
Will my co-owner and I both get margin call notifications?
Yes. We send margin call alerts to both account holders, so either of you can act to keep the account in good standing.
Can I enable margin on more than one of my joint accounts?
No. Each primary account holder can have one joint margin account. You can still be the co-owner on other joint margin accounts where someone else is the primary account holder.
I made a mistake on my suitability assessment. How do I fix this?
If you're a Generation client, contact our support team and we'll ask our compliance team to review your answers. Otherwise, you can retake the assessment after 30 days.
Can my co-owner enable margin on our joint account?
No. Only the primary account holder can enable margin, and the account has to be fully open first.
Can I turn margin off after I enable it?
No. Enabling margin can't be undone. You can cancel while you're still enabling it, before you finish.
How do I cancel enabling margin?
You can cancel any time before you finish enabling margin, in the Wealthsimple app or on the web. Follow the steps in Cancel while you're enabling margin.
Why don't I see the option to enable margin on my joint account?
The option appears only when you're the primary account holder, your co-owner has finished opening the account, and you don't already have a joint margin account as the primary account holder. This applies in both the Wealthsimple app and on the web.
Whose options trading counts toward the lower margin rate in a joint account?
US options contracts traded in a joint margin account count toward both account holders. If either account holder qualifies for a lower rate, the whole account is charged that rate.
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