In this article:
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 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.
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 non-registered trading account.
- Dual approval: Both account holders must complete a suitability assessment and be approved for margin trading.
- One per primary owner: 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 upgrade another joint trading account to margin. 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 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 trading account to a margin account.
- Complete suitability forms: You and your co-owner will each 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: We'll review both submissions. This process typically takes 5–10 business days.
- Account upgrade: If you're both approved, we'll manually enable margin on your existing joint trading 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 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 owners. Either owner can resolve it by depositing funds, transferring securities into the account, or selling securities.
- Interest rates: You'll pay interest on any borrowed balance. Rates are based on your client status (Core, Premium, or Generation) and the current Wealthsimple Prime rate. Learn about fees and interest in a margin account.
- Beta limitations: Currently, you can't open a new joint margin account directly; you must upgrade an existing joint trading 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 upgrade more than one of my joint accounts to margin?
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?
Please contact our support team.
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