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Overview
A joint margin account is a shared investment account that allows you and a co-owner to borrow funds against your existing securities to increase your purchasing power. This means you can leverage your shared portfolio to potentially enhance returns or access cash without liquidating your holdings.
Eligibility
To be eligible for a joint margin account during this beta period, you must meet the following requirements:
- Existing account: You must already have a joint self-directed non-registered account.
- Dual approval: Both account holders must complete a suitability assessment and be approved for margin trading.
How to open a joint margin account
Since this feature is in beta, the process involves a manual upgrade rather than a standard account opening:
- Contact support: Reach out to our support team to express interest in upgrading your joint self-directed account to a margin account.
- Complete suitability forms: Both you and the co-owner will receive unique links to a suitability assessment via Typeform.
- Submit information: Each owner must individually provide details about their financial situation, employment, and risk tolerance.
- Wait for review: Our team will review both submissions. This process typically takes 5–10 business days.
- Account upgrade: If approved, our team will manually enable margin capabilities on your existing joint account.
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 initiated the trade.
- Margin calls: If the value of your shared assets falls below the required maintenance level, a margin call will be issued to both owners. Either owner can take action to resolve it by depositing funds or selling securities.
- Interest rates: You'll be charged interest on any borrowed balance. Rates are based on your tier (Core, Premium, or Generation) and current Wealthsimple Prime rate.
- Beta limitations: Currently, you cannot open a new joint margin account directly; you must upgrade an existing joint self-directed account.
Frequently asked questions
Who is responsible for the margin debt?
Each account holder is fully responsible for the total debt in the account.
Do both owners receive margin call notifications?
Yes. Margin call alerts are sent to both account holders to ensure the account remains in good standing.
Can I change my suitability answers if I'm rejected?
If your application is rejected, you cannot change your answers immediately and must wait six months before reapplying.
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